Terra

Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic. Due to limited liquidity, LUNA sell orders will not be accepted from 10:51 PM - 11:11 PM CT. Please submit your orders outside of this window.

On Thurs. May 25, Terraform Labs announced that the Terra community had approved the creation of a new blockchain, Luna 2.0. The creation of this new chain is a response to unprecedented volatility on the Luna 1.0 chain, which caused the price of the original LUNA and UST to collapse almost to zero. 

As part of the migration, the former asset LUNA will become Luna Classic, or LUNC. A portion of LUNA holders will be eligible to receive an airdrop of the new token (LUNA), per the terms outlined by Terraform Labs.

The new Terra blockchain will utilize the new LUNA, and will not include the UST stablecoin. 

On 9 May, after nearly 18 months of steadily holding its value against the US dollar, the so-called stablecoin TerraUSD (UST) became unpegged. The uncoupling triggered a cascade response that ultimately crashed UST and the Terra (LUNA).

TerraUSD (UST) is a stablecoin, which means it is a cryptocurrency pegged to a fiat currency. In this case, it is designed to be pegged to the US dollar. Stablecoins are intended to allow investors to hold crypto assets with less volatility, and trade a dollar equivalent without needing to cash out their positions. 

UST is considered an algorithmic stablecoin because instead of being backed by assets such as cash or cash equivalents, it is supported by on-chain code that facilitates a change in the supply and demand between UST and LUNA.

LUNA is the cryptocurrency that works in unison with UST in an effort to keep UST in 1:1 parity with the US dollar. One dollar of LUNA can always be converted at a 1:1 ratio to 1 UST. 

For example, if LUNA is trading at $10, then it can be redeemed for 10 UST, and 10 UST can be redeemed for 1 LUNA. If UST rises above its $1 peg to $1.01, then traders can swap 1 USD of LUNA for 1 UST. This trade burns 1 LUNA and mints 1 UST, which can then be sold for 1.01 USD. 

If UST rises to $1.02, then traders can sell for a 2 cent profit, and so on. 


In theory, increasing the supply of UST and lowering the supply of LUNA brings the price of UST back down until it reaches $1. Conversely, if UST drops below the $1 peg, then traders will be incentivized to buy 1 UST for 0.99 USD, which can then be swapped for 1 LUNA. 

This move burns UST and mints LUNA, sending UST higher towards the $1 peg.

UST lost its peg to the dollar starting on May 8th following large withdrawals of UST from Terra’s DeFi protocol Anchor. UST fell quickly, and struggled to regain its peg because the burning of UST and minting of LUNA couldn’t keep up. 

UST descended rapidly as the prolonged de-pegging led to uncertainty and a snowball effect of larger withdrawals. 


A significant share of circulating UST was locked on Anchor, a Terra-based lending and borrowing protocol that paid users 19.5% to stake UST. 

The LFG used up about $2.9 billion of its bitcoin reserves in an unsuccessful attempt to revive UST. 

WSJ 
Decrypt 
Bloomberg

*This content is for educational purposes and is not investment advice.

Terraform Labs co-founder and CEO Do Kwon broke his social media silence early Friday evening with a trio of tweets about the collapse of Terra's LUNA token and associated stablecoin, UST. 1/ I've spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have […] The post Do Kwon says he is ‘heartbroken' in new statement, claims no UST or LUNA sold during crisis (edited) appeared first on The Block.

Do Kwon says he is ‘heartbroken' in new statement, claims no UST or LUNA sold during crisis (edited)

VanEck, Valour and 21Shares have been forced to halt their LUNA-based exchange-traded products (ETPs) as the Terra Network remains halted.  The post Terra network halt leaves LUNA-based ETPs unable to trade appeared first on The Block.

Terra network halt leaves LUNA-based ETPs unable to trade

According to statistics on Friday, May 13, the top stablecoins by market capitalization are currently worth $163.7 billion after the stablecoin economy was valued at close to $200 billion just last week. Of course, the climactic terrausd (UST) failure wiped out billions from the stablecoin economy, and Binance's stablecoin BUSD has recently entered the top […]

Stablecoin Shuffle — Terra Fiasco Shakes up Fiat-Pegged Crypto Economy, Over $35 Billion Disappears

Terra co-creator Do Kwon has a plan to revive the network after its collapse. It doesn't involve UST stablecoin.

Do Kwon Resurfaces to Propose Clean Slate for Terra—Without UST Stablecoin

Do Kwon, the co-founder and CEO of Terraform Labs, pitched a revival plan proposal on Friday following the collapse of the algorithmic stablecoin UST and its related Terra-based asset, Luna. The post Do Kwon pitches revival plan for Terra blockchain, with distributions to LUNA and UST holders appeared first on The Block.

Do Kwon pitches revival plan for Terra blockchain, with distributions to LUNA and UST holders

Three different exchange-traded product (ETP) issuers announced they would suspend trading or issuing shares in Luna-related investment vehicles after the cryptocurrency lost 99.98% of its value over the course of a week.

The decisions come after the collapse of algorithmic stablecoin TerraUSD (UST) along with the LUNA ecosystem.

This episode is sponsored by Kava and BCB Group.

The “Revival Plan” involves redistributing network ownership to UST and LUNA token holders.

Bitcoin

Amid Terra's collapse, over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard. The post Over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard appeared first on The Block.

Over $1.2 billion in bitcoin reserves remains unaccounted for by Luna Foundation Guard

Luna buy and sell trades will be reversed, the company said in a post on its website. The post Trading app Crypto.com halts Luna trading after quoting wrong price appeared first on The Block.

Trading app Crypto.com halts Luna trading after quoting wrong price

Following a few days of carnage, the two leading crypto assets built on top of the Terra blockchain have plummeted to significant lows. LUNA has dropped to $0.00000100 per coin and the once-stable coin terrausd (UST) hit a low of $0.044 per unit. After temporarily halting the Terra blockchain and restarting it, the team has […]

‘A Dark Day for Crypto' — A Deep Dive Into the Obliterated Terra Token Ecosystem and Damaged Apps

The Terraform Labs CEO was last seen in Singapore, but his current location is unknown. The post After Terra's stablecoin implosion, battered investors ask ‘where is Do Kwon?' appeared first on The Block.

After Terra's stablecoin implosion, battered investors ask ‘where is Do Kwon?'

TerraUSD, an "algorithmic" stablecoin that's meant to be pegged one-to-one with the dollar, plunged below $1 this week.

Regulators are growing anxious about stablecoins after Terra's stunning collapse

In a Twitter thread, the Binance boss shared his disappointment in how Terraform Labs team handled its ecosystem's collapse.

Binance CEO 'Disappointed' in Terra's Handling of UST Depeg, Contrasts With Axie Infinity

Terra halted its blockchain, and Binance suspended LUNA trading following the coin's implosion.

Terra Halts Its Blockchain, Binance Suspends LUNA Trading

Galaxy Digital, an early backer of Terraform Labs and Luna, said in a release that market conditions warrant an update on its liquidity position. The post Terra-backer Galaxy Digital gives update on liquidity position appeared first on The Block.

Terra-backer Galaxy Digital gives update on liquidity position

Congressional leaders are changing their approaches in response to the Terra algorithmic stablecoin debacle. The post Terra disaster fuels work of Congress on stablecoin legislation appeared first on The Block.

Terra disaster fuels work of Congress on stablecoin legislation

Binance CEO Changpeng Zhao has weighed in on the collapse of the stablecoin TerraUSD (UST) and its related token Luna (LUNA). The post Binance CEO Changpeng Zhao disappointed with how Terra handled UST's collapse appeared first on The Block.

Binance CEO Changpeng Zhao disappointed with how Terra handled UST's collapse

Luna's supply increased by nearly 17,000 times in just three days as its mechanism led to a vicious cycle of higher supply and lower prices. The post Luna supply soared to 6.5 trillion coins before Terra's latest halt appeared first on The Block.

Luna supply soared to 6.5 trillion coins before Terra's latest halt

After warnings of delistings, the crypto industry's largest exchange Binance finally removed all trading pairs for Terra's LUNA and UST.

Binance Halts Trading for Terra, Delists LUNA and UST

Bitcoin jumped back above $30,000 on Friday as it rebounds from levels not seen since late 2020.

Cryptocurrency luna crashes to $0 as UST falls further from dollar peg; bitcoin rebounds 8%

With its native token LUNA and stablecoin UST in freefall, Terra has halted its blockchain for the second time in quick succession. The post Terra says it has halted blockchain for second time in 24 hours appeared first on The Block.

Terra says it has halted blockchain for second time in 24 hours

Janet Yellen, recently speaking at American University, made erudite, sensible remarks about the right approach to regulate digital currencies and assets, innovation and the policies surrounding them.

The blockchain was halted earlier Thursday after the governance token luna fell in price.

The circulating supply of Luna has risen dramatically while the price of the Terra native asset has plunged. The post Luna token price craters below $0.0001 as circulating supply soars above 400 billion appeared first on The Block.

Luna token price craters below $0.0001 as circulating supply soars above 400 billion

As yet another altcoin nears zero, the event reminds the community why Bitcoin is the only authentic cryptocurrency.

What Terra's Collapse Teaches About ‘Crypto' and Bitcoin

Terra temporarily halted its blockchain as its native asset LUNA suffered through extreme hyperinflation and price collapse. The embattled algorithmic stablecoin protocol halted the blockchain on Thursday in order to prevent governance attacks because LUNA's inflation significantly reduced the cost of an exploit. Terra resumed block production around 11 a.m. PT. LUNA's circulating supply skyrocketed […] The post Terra Temporarily Halts Blockchain As LUNA Hyperinflates and Implodes 99% in One Day appeared first on The Daily Hodl.

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