Geopolitical tension around the globe and scarcity of commodities has elevated inflation to a level that people have not seen in a long time. No exchange in the whole world could manage to overcome this inflation and save the economy from drowning. Global indices like Dow Jones, Nasdaq, FTSE 100, Nikkei, Hang Seng and Nifty are being ruled by big bears currently and cryptocurrencies like Terra Luna, Bitcoin, and Ethereum are no exception to this fact.
The catastrophic collapse of Terra (Luna), which was formerly one of the top ten most valued cryptocurrencies, has wreaked havoc on the lives of investors who dread becoming homeless as a result of the crypto chaos. Its market valuation has collapsed from almost $40 billion to barely $500 million in the previous 24 hours, a drop of more than 99% that has left investors with nowhere to go. Terra used to be one of the top ten most valued cryptocurrencies but presently it’s difficult for this cryptocurrency to survive in this competition.
Investors who have invested in Terra Luna are just in a big trauma. They don’t know what to do and what went wrong. With the help of social media, investors have tweeted all about their losses and as astonishing as it seems people have taken loans and sold their houses just to repay the loss they have faced in the past few days.
Terra withdrawals have been momentarily halted by the cryptocurrency exchange Binance. Terraform Labs founder Do Kwon tweeted, “I understand the last 72 hours have been extremely tough on all of you – know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this.” Terra said that the “prevailing peg pressure on $UST from its current supply overhang is rendering severe dilution of $LUNA”.
UST has been adopted by Terra as a stablecoin that is connected to an underlying asset such as gold or the US dollar. It tweeted, “The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads,”
It suggested that the leftover UST be burned in the neighbourhood pool. “TfL will burn the remaining 371 million UST cross-chain on Ethereum. TFL just staked 240 million $LUNA to defend from network governance attacks,” it noted.
Yes, the economy all over the world is in a critical position presently but all we can do is wait for these days to set and for the sun to shine bright on all of us and bless us with tons of profit.
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