LUNA, UST Move Closer to Zero, as Do Kwon Asks Holders to "Stay Strong"
Do Kwon has urged holders of LUNA to “stay strong,” as the price moves ever closer to zero. Following the UST stablecoin losing parity with USD, prices have plunged, falling to a new low this morning. LUNA, UST Tumble Toward Zero
As of writing, LUNA/USD is trading at $5.45, which is marginally higher than its earlier low of $4.21.
To put things in perspective, prices are down nearly 90% from yesterday’s peak of $34.28, and only seven days removed from it trading at a high of $88.40. LUNA/USD – Daily Chart
Following a brief rally in the aftermath of it losing dollar parity, UST also moved towards zero, hitting a bottom of $0.2998 earlier today. UST/USD – Daily Chart
This came less than 24 hours after it was trading at $0.9486, however markets panicked at a lack of communication from LUNA founder Do Kwon, who was said to be working on a “recovery plan.”
Although some are still confident in the premise of algorithmic stablecoins, it is yet to be seen if UST will survive long enough to be a part of any future developments.
Kwon finally provided a more substantial update to the Terra community just recently, noting: 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.
The LUNA founder said of UST that “Before anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before UST can start to repeg.” Kwon then provided some technical prospects for decreasing “the supply overhang of UST.” Tags in this story Crash, do kwon, LUNA, Stablecoin, Terra, terra (LUNA), UST
Do you think LUNA and UST can come back after confidence has been shaken by this massive crash? Let us know in the comments section below. Eliman Dambell
Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX. Crypto Downturn Shakes Digital Collectible Markets as NFT Sales Slip 42% Lower Than Last Week MARKETS AND PRICES | 1 day ago As BTC Slides Toward Resistance, the Chance of a Rare Triple Top Formation Comes Into Play MARKETS AND PRICES | 2 days ago
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