Crypto News

Terra temporarily halts blockchain as LUNA hyperinflates and implodes 99% in one day

Terra momentarily stopped his Blockchainas its domestic asset LUNA suffered from extreme hyperinflation and price falls.
The contested algorithmic stablecoinProtocol halted blockchain Thursday to prevent governance attacks as the inflation of LUNA significantly reduced the cost of an exploit. Terra resumed block production around 11:00 am PT.

LUNA’s circulating supply has skyrocketed from around 345 million on Tuesday to over 1.46 billion on Thursday, according to crypto analytics firm Messari.

Price-wise, LUNA plunged more than 99% in 24 hours, rising from around $1.00 on Wednesday to a low of less than $0.0083 at one point Thursday morning. The collapsing crypto-asset is trading at $0.02719 at the time of writing, having peaked at more than $119 less than 40 days ago.

LUNA’s price plummeted after Terra’s UST stablecoin lost its peg to the dollar. UST was designed to allow holders to redeem 1 UST for $1 worth of LUNA. As UST fell well below the dollar level, massive selling pressure dragged LUNA’s prices lower as aggressive arbitrage became effective. UST is trading at $0.3346 at the time of writing.

our recommendation Terra temporarily halts blockchain as LUNA hyperinflates and implodes 99% in one day, Crypto Trading News

Terra founder Do Kwon reached out to the LUNA community on Twitter early Wednesday morning with a plan to get through the crisis. However, Kwon has since remained silent as LUNA’s price drop sharply intensified.

Kwon tweeted and responded to tweets dozens of times a day in the days leading up to the LUNA and UST price drop.
Check the price action

Source: Crypto News Deutsch

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button