Tuesday, Jul 05, 2022
Outlook Money

Terra (LUNA) Wipes Off Billions Of Investor Wealth; Indian Crypto Exchanges Stop Its Trading

Terra (LUNA) was once among the top 10 decentralised finance crypto currencies but has now lost almost all its value. Indian crypto exchanges have stopped trading in the cryptocurrency

Terra (LUNA), which once had a billion-dollar market value, is now worth only a few million dollars.

Terra (LUNA), which once commanded a billion dollar market capitalization, is now down to mere millions. Just two weeks ago, Terra’s market capitalisation was $30 billion; today, as of 2 p.m., it is merely $922.88 million. Terra was trading at $83 per unit a week ago. Now, it is trading at $0.0002176.  

What led to Terra’s free fall in value? Read here to find out

Not only Terra but its algorithmic stablecoin Terra USD (UST) too has lost value. It has lost approximately 84 per cent of its value and trades way below the dollar peg. Ideally, every dollar stablecoin should have a 1:1 peg ratio. This means that for one dollar-based stablecoin, you should get $1. But UST is currently trading at $0.1655, as per Coinmarketcap data as of 2 p.m. 

A user named Sachin shared his portfolio holding of Terra on Twitter. It shows how his investment of Rs 9,445 in Terra is now worth just Rs 0.03 (that’s 3 paisa). 

 What’s The Update? 

Founders: Founder Do Kwon, along with the Luna Foundation Guard (LFG) council, voted to deploy additional capital resources of $1.5 billion and also appoint market makers such as over the counter trading firms to stabilise the price of LUNA and UST.  

 Crypto Exchanges: The world’s biggest crypto exchange, Binance, had to suspend trading and withdrawal service for LUNA and UST due to high volume of pending withdrawal transactions and the underlying LUNA blockchain becoming slow due to severe network congestion. 

Indian crypto exchange WazirX said in a user notification earlier today morning that it will start the process of delisting LUNA/USDT, LUNA/INR and LUNA/WRX trading pairs. For user convenience, they will enable Binance free transfer to withdraw their LUNA funds. Other crypto exchanges like CoinDCX, BuyUcoin and Unocoin have also said they will delist LUNA trading pairs, according to a Livemint report. 

 Terra Blockchain: Earlier last night, the Terra Blockchain had to be briefly stopped to put in place a governance attack patch. Due to the sudden low price of LUNA, the cost of executing a governance takeover hack has been significantly reduced. This is why the patch had to be put on it. “The Terra Blockchain has officially halted at block 7607789. Terra Validators have halted the network to come up with a plan to reconstitute it,” read a tweet post by Terra. Read more about it here: