The Fall of Luna Foundation 🌪
On May 8, the TerraUSD (UST) stablecoin lost its bind to the US dollar for a while. This happened after UST was immediately sold in the market for a total of $300 million.
On May 9, the asset finally “got rid” of the US currency and went into a state of free fall. Since the exchange rate of the coin is stabilized due to the burning of LUNA, there was a drop in the price of LUNA. The cost of LUNA has dropped by more than 90%.
To stop the rapid decline, Dong Kwon, the creator of the LUNA token and TerraUSD stablecoin, announced in his Twitter account that he had a plan due to which LUNA and UST would recover.
Luna Foundation Guard is going to raise at least one billion dollars from investment funds to support UST.
Investors are also invited to buy LUNA with a good discount, up to 50%.
At the moment, Terra is trading at a price of $0.0001997, the drop per day was more than 99%.
The team has already completely disabled the blockchain several times.
And the Binance exchange stopped trading pairs with Luna.
Thus, due to the actions of one person, the exchange rate of one of the most promising assets dropped sharply in just 4 days, and traders and investors lost billions of dollars. Their trust in the project and the stablecoins has greatly shaken.
We hope that the Terra management will be able to stabilize the situation and regain positions, at least partially.
We also want to thank each of our users who supported and continue supporting the Decimal project and who gave in to the panic in the period from 02/24/2022 to 02/28/2022.
You represent our support and years of effort, and all the developments and all the achievements are primarily your merit.