Terra USD, proved its not a stablecoin

[2tang]

I hope so, lots of people got liquidated for this clown show and media are starting to cover it, this incident will again would let more people cry for more stricter regulation. I really dont like when governments add more regulation.

If the added rules will only benefit one-sidedly, then I won't like this either, but if the regulations can have a good effect on everyone, I think that's good, but so far I don't see much benefit from the birth of the new regulations. for everyone.

[vv181]

lmao, it's horrible. UST, the so-called USD stable coin roughly dropped by -40%.

Although UST makes its way up right now to $0.92, Binance suspends the withdrawal of Luna and UST. It couldn't be more worse, the reason? well, it is simply because of network "slowness and congestion". Pretty absurd reason, IMO.

See: Withdrawals on Terra (LUNA) Network Temporarily Suspended

[lottery248]

I believe that this is just temporary. Terra Luna's team already released a statement about this case. A lot of people are worried about this, even me I have some UST but I am still calm. This is also because of the recent dump, for sure they didn't anticipate this but I am positive that they will become stable soon and fix this issue.

I hope so, lots of people got liquidated for this clown show and media are starting to cover it, this incident will again would let more people cry for more stricter regulation. I really dont like when governments add more regulation.

people walking into those trading things without doing any due diligence towards what they are trading in the first place is their fault. even though we have verifications like KYCs, scammers can use this to steal personal information.

[kidbounty]

Terra was a scam project. Do known just emptied the bitcoin wallet as this used to back the UST. Remember that if UST unlike another stable token which fully pegged with dollar but UST was a bit different. This is algoritmic stable token that used different mechanism. That's why the price was dumping so hard. Do known has even sold some of his bitcoin to backed this stable token. It was so garbage as fuck.

UST used to drop more than 40%, shortly after that LFG moved 28k2 bitcoin to binance to support and support UST price but this will cause a massive crash to the market. LFG is using all 3 billion USD of bitcoin accumulated previously to save UST. If it fails, Do known will be the cause of a large market crash like in 2018.

this is like a dilemma for him. if he wants to keep UST that means there will be a huge dump for bitcoins. but if he didn't, Luna, UST, and the whole project under him would lose trust. Currently, Luna has fallen very deep compared to other altcoins. and this is going to get really bad after news of luna's backup wallet moving his bitcoins.

[YellowSwap]

Right now I think this is greatly affecting Luna price on exchanges, hours ago luna was trading for 54$ and right now its down to 35$, this is one of the most performing altcoins out there, they need to come up with a good plan or else Luna will go down to zero.

[ItsNotSean]

I believe that this is just temporary. Terra Luna's team already released a statement about this case. A lot of people are worried about this, even me I have some UST but I am still calm. This is also because of the recent dump, for sure they didn't anticipate this but I am positive that they will become stable soon and fix this issue.

There is no way for it to recover at this point.

Expect all other algorithmic stablecoins to follow.

All eyes should be on the grey-market miasma that is USDT at this point. It was backed by commercial paper and some cryptocurrency.

[Oshosondy]

Right now I think this is greatly affecting Luna price on exchanges, hours ago luna was trading for 54$ and right now its down to 35$, this is one of the most performing altcoins out there, they need to come up with a good plan or else Luna will go down to zero.

Luna dropped to $25 many hours ago, it dropped to $23 few hours ago and has never gotten back to $54. But it was trading around that price yesterday. As cryptocurrencies are falling in price, more dawn on Luna that fall most among the coins with high marketcap, the coin is extremely volatile even than other altcoins.

There is no way for it to recover at this point.

Expect all other algorithmic stablecoins to follow.

The reason to go for fiat back stable coin, if people see fiat to be a stable currency, then going for fiat backed stable coin is the ight thing to do. Algorithmic stables coin has been disappointing in the past, most of them are unstable coins.

[FairUser]

I'm also not too surprised to see some stablecoins in the past lose the value they defaulted to, UST has never been something I believe in in this space. Right now we can see dozens of negative stories around it and the whole ecosystem, one of which I think the BTC drop is having bad consequences for the fragile things in the air. this time. And the false promises will soon be exposed. Recently I am also seeing USDD appear then the same thing will happen again.

[Rufsilf]

This was the issue that brought down Terra Luna's price to something terrible and lost its credibility and trust.

Reports have emerged that a decentralized finance project called Wonderland is linked with a crypto criminal with ties to one of the industry’s largest scandals.

source: https://www.fxempire.com/news/article/time-tokens-tank-as-defi-project-reveals-ties-with-failed-crypto-exchange-quadriga-880356

We can't blame investors to give up on Terra, of course, we could think it was not safe anymore. It is a need for the team to clarify that issue and even give a solution to it or else it won't recover back and continue to drop more.

[Republikcoin.com]

Right now I think this is greatly affecting Luna price on exchanges, hours ago luna was trading for 54$ and right now its down to 35$, this is one of the most performing altcoins out there, they need to come up with a good plan or else Luna will go down to zero.

It doesn't look like it's going to go down to zero either because the Luna team itself also knows what to do in a downturn in the market like now because if they don't do anything in the current situation, their product will die in the crypto space. So in general it's clear they have to move to give their well-known product a bit of durability.

[tvplus006]

I believe that this is just temporary. Terra Luna's team already released a statement about this case. ..

Yes, this is indeed a temporary price reduction, but it shows the vulnerability of such stablecoins and the insecurity of investors who have decided to keep their money in UST. But it should be assumed that when the value of UST is fully restored, the holders of this stablecoin will decide to replace it with a more stable stablecoin, such as BUSD, which has not yet seen such drawdowns in price.

[makishart]

Right now I think this is greatly affecting Luna price on exchanges, hours ago luna was trading for 54$ and right now its down to 35$, this is one of the most performing altcoins out there, they need to come up with a good plan or else Luna will go down to zero.

It's going back again to the 30 and i do believe the price will not change a lot even when the market will be bounce caused by what already said by the company if their stable token fully decentralized was a big lie. Terra luna can't even sustain from the dump. Their stable token was the worst one in the crypto history and i think that people will always call this as the worst history for the stable token in the market.
The stable token issue on terra has been triggering so many problem on it. So many FUD was also coming lol

[kojektea]

Lately a lot of the community that talks about UST is a bit strange, they can drop below $1, and in my opinion it really deserves to be called not a stable coin. But we also don't know what the exact cause is, even when a bear market where everyone should be buying coins is stable, why their coins are down. But I think it has something to do with the airdrop they tweeted recently, because it dropped right then and there. maybe they are not as stable as other coins in balancing supply and demand.

[Jackl87]

price: $.67 during the time of the post
https://www.coingecko.com/en/coins/terra-usd
Does anyone know why its losing its value? I havent dived into terra because i am not interested on the project. Im glad, I didnt since i think TerraUsd and Terra affect each other.
I think terra will be exposed a project that is just a big ponzi scheme.

I am not invested into Terra myself but i still remember that few weeks ago Terra was pumping pretty hard and overall the performance of this coin was very impressive as it went from below 1 USD to over 100 USD in a hear and a half. I also don't really know how the mechanics behind UST are working but i would guess that if the sell pressure is just to much at a given time the price will drop and of course once it starts dropping people will become nervous and also begin to sell which makes it even worse of course. There was a similar issue with USDN (USD Neutrino from the waves platform) a few weeks ago but now it has stabilized again and i think it will be the same for UST.

[Yogee]

This just shows algorithmic stable coins is still an experiment for the founders. It's just unfortunate that this supposedly stable coin caused some panic among investors and it's safe to say they lost money too.

.....
I also don't understand why TerraUsd has dropped in price, even though other stablecoins like BUSD, USDT and USDC have always stayed at $1 as usual.

Those three are backed by fiat and other assets unlike UST which relies on algorithmic relationship with LUNA.

[malcovi2]

I believe that this is just temporary. Terra Luna's team already released a statement about this case. A lot of people are worried about this, even me I have some UST but I am still calm. This is also because of the recent dump, for sure they didn't anticipate this but I am positive that they will become stable soon and fix this issue.

I hope so, lots of people got liquidated for this clown show and media are starting to cover it, this incident will again would let more people cry for more stricter regulation. I really dont like when governments add more regulation.

people walking into those trading things without doing any due diligence towards what they are trading in the first place is their fault. even though we have verifications like KYCs, scammers can use this to steal personal information.

They weren't trading, people took a loan in Anchor protocol used terra usd as a collateral, unfortunately for them they didnt think that it would lose its 35% value.

[rahmad2nd]

price: $.67 during the time of the post

https://www.coingecko.com/en/coins/terra-usd

Does anyone know why its losing its value? I havent dived into terra because i am not interested on the project. Im glad, I didnt since i think TerraUsd and Terra affect each other.

I think terra will be exposed a project that is just a big ponzi scheme.

Not as stable coin with UST after dropping as lower price until 0.6$ although right now have reach up above $0.91 but still different with other stable coin like USDT and BUSD. I think unbelievable with UST Luna network because drop as stable coin, bigger change drop today with UST and right now still have the same price with USDT. Will have chance back drop again with UST or back the same values with USDT as stable coin. I think when UST drop until 0.6$ can't called again with stable coin because not have meaning and function as stable coin for UST with Luna network.

[darxiaomi]

You are talking a lot of people losing money but........ How about the people who buy UST in 0.68 and we all know if its a stable coin have to comeback to 1 so in a few hours they can make a 32% in USD.

Take an eye on that because i know people who made this movement. Obviusly it was risky because this can fall more and GG.

[bitkanu]

I see some posts created by do kwon and im sure that terra luna must have changed its mechanism to use bitcoin into the fiat money. This proves that terra has no power to face the bearish trend when bitcoin must be dumped a lot. terra didn't aware if this foundation is not the only party who has been holding bitcoin. So, anytime bitcoin can be dumped to the bottom and this will be making people feel panic. Look at how so many people blame this company for this

[tvplus006]

Lately a lot of the community that talks about UST is a bit strange, they can drop below $1, and in my opinion it really deserves to be called not a stable coin. But we also don't know what the exact cause is, even when a bear market where everyone should be buying coins is stable, why their coins are down. But I think it has something to do with the airdrop they tweeted recently, because it dropped right then and there. maybe they are not as stable as other coins in balancing supply and demand.

I offer you a very simple explanation of the reasons for the UST dump: https://www.benzinga.com/markets/cryptocurrency/22/05/27098231/terra-luna-crashes-45-as-ust-stablecoin-loses-peg-again - "UST’s token mechanics are set up so that traders can redeem $1 of LUNA for $1 of UST, ensuring that the stablecoin is constantly pegged to the dollar at all times. LUNA’s sharp decline has caused its market cap to fall under that of UST, with traders unable to redeem UST for LUNA in its previous 1:1 parity".