Previously, the Terra project was really explosive. However, over time, it no longer holds its own, Luna once dropped in price by 99%. So why did Luna crash? Can this coin be restored to its original state? Let's find the answer right here.
Main content
1. Some general information about LUNA coin
2. Why did Luna crash? The evolution of LUNA
3. Can Luna recover?
4. Some other questions about LUNA coin
5. Epilogue
Some general information about LUNA coin
Terra was built by Daniel Shin and Do Kwon. This project first became known in January 2018.
Since then, LUNA coin has been released based on this Terra project. This also defaults to a Blockchain platform from the Cosmos ecosystem.
However, over time, the project develops its own new ecosystem. The main purpose of that is to optimize the development of Stablecoin Terra.
In fact, experts have also pointed out that the criterion of this currency is towards independence, not being controlled by anyone. The most important thing is to achieve the highest trading efficiency.
LUNA coin received attention from the very beginning
Why did Luna crash? The evolution of LUNA
On May 12, 2022, the world witnessed the volatility of Terra – LUNA. The American newspaper called this event a black swan, at that time, the price of this coin suddenly dropped by 99.5%.
Specifically, slowly, the price of 120 USD / 1 LUNA decreased to 0.68 USD / 1 LUNA. This has pushed countless investors around the globe, including Vietnam, into irony.
This incident caused a crisis of investment confidence. There have been countless people who have sold out of all the coins they are holding due to fear of a “cryptocurrency pandemic”.
After that, financial authorities started to have stricter sanctions on stablecoins. This puts the entire market at risk. It can be said that just a coin like LUNA has caused damage to a large ecosystem.
Many people think that LUNA's model is quite similar to the Ponzi model. After the black swan event, not many people believe that LUNA can recover to the way it was before.
Details of the process of LUNA crashing
To better understand the process of the LUNA coin collapse, please take a look at the examples below.
- May 8, 2022: Luna Foundation Guard begins operations. The first is to withdraw 150,000,000 USD with the purpose of upgrading the project to 4pool.
- May 8, 2022: On that same day, vandals sell over $350,000,000 in Terra coins. This behavior inadvertently drains Terra's liquidity. Also from here the floor began to lower the curtain.
- Luna Foundation Guard has to sell BTC to buy UST : This creates high pressure for BTC and investors who own this coin.
- The bad guys continue to sell the rest of UST : Taking advantage of the zero liquidity. This continues to push LUNA on the path to collapse.
- The balance between UST and USD is gone : Everything is more or less affected. In particular, some investors have intentionally sold UST as well as sold off on exchanges.
- Exchanges stopped withdrawing UST because of overload: When 650 million UST of bad guys sold, combined with investors executing sell orders.
- The price of LUNA fell to a record low of $ 0.7: Started to go deep into the recession and did not recover.
Who caused LUNA to crash?
During the crisis, many investors holding LUNA were not too concerned about the mastermind. All they care about is how to sell this coin as quickly as possible.
In fact, there have been a number of international articles predicting LUNA will collapse, but not many people are interested. Later, it was reported that BlackRock and Citadel were the cause of the decline of the project.
Why did Luna crash? Is it BlackRock and the Citadel?
In fact, two institutions BlackRock and Citadel borrowed 100,000 BTC from the Gemini exchange. In addition, they also made an exchange of 25,000 BTC to UST.
According to some more detailed sources, Do Kwon and BlackRock collaborated to trade a large amount of BTC into UST. And of course, the one who got caught up in this was Do Kwon.
Can Luna recover?
This is the question of many people, especially aspiring investors. In fact, there were many coins that collapsed but then there were many good developments, even more than before.
What factors allow Luna to recover like before?
The value of LUNA may recover in the future if a positive factor occurs. However, this coin and other cryptocurrencies are often influenced by market factors.
Whether or not the Luna coin recovers or not depends on a number of factors:
- Cosmos Blockchain-based projects develop well : This is a prerequisite because it creates a positive momentum for the value of LUNA coin.
- The growth of the cryptocurrency market : If developed well can also have a positive impact on the value of this coin.
- Investor and User Interest : Very importantly, LUNA needs new investor interest and participation.
In fact, the value of the Luna coin depends on many different and unpredictable factors. Investing in this coin needs to be done with knowledge and planning to minimize risk.
Luna coin's re-evolution
After the crash, LUNA coin had a bit of a bullish signal. On May 15, 2022, that is, after 1 week of the black swan event, its price reached VND 7037.
After much criticism, Terra 2.0 was officially born. Its highlight is the absence of stablecoin UST. It is also airdropped on staking houses and Luna Classic holders as well.
In addition, Terra also deploys Terra Foundation Labs. This also means that the project will be a chain owned entirely by the community.
Until March 2023, LUNA has been continuously recovering. Experts predict that this currency will continue to have new developments.
Terra 2.0 was born and solved many common problems
General situation of LUNA coin in 2023
As mentioned, in 2023, the LUNA coin has had many positive changes.
According to the data of coinmarketcap site. LUNA is currently worth 31,505.43 VND. Besides, its trading volume in 24 hours also reached 1,564,269,383,129 VND.
Some other data about the latest LUNA coin:
- Average price change of LUNA over 24 hours: 2.70%
- Market capitalization: 7,283,078,746,225 VND
- Circulating Supply: 231,168,999 LUNA
- Market advantage : 0.03%
- Market rank : Rank 106
Some other questions about LUNA coin
Currently, due to the price recovery, many people want to return to invest in LUNA. There were also many questions raised.
Should I invest in LUNA coin?
Investing in LUNA coin or any other cryptocurrency is risky. You need to be done with absolute care, plus learn more about the cryptocurrency market.
LUNA has gone deep into the crisis and it is not surprising that it may also collapse a second time.
When investing in LUNA coin, you should thoroughly understand the project, technology, market situation and other factors that may affect its value. In addition, investment decisions should also be made based on fully up-to-date information.
Besides, you can also ask for the help of friends, financial experts. Or simply learn from those who are investing in this coin.
The value of LUNA is on the rise
Based on the current situation, you should only invest in LUNA if you have financial balance. It also means that if you lose it, you will not regret it. However, since Terra 2.0 was born, you don't have to worry as much as before.
Where can I buy Terra 2.0 (LUNA)?
After the crash event, many exchanges turned their backs and removed LUNA from their list. However, after that, a number of addresses committed to trading new LUNA tokens appeared.
These can be mentioned as Huobi, Bitrue, Bitfinex, FTX or KuCoin, Gate.io, Bybit... It is forecasted that in 2023, the number of exchanges accepting LUNA transactions will increase..
However, you should only buy LUNA at 1 or 2 exchanges. Besides, only 1 Terra wallet should be used to ensure the safety of personal information and avoid being attacked by Hackers.
Where can I find more information about LUNA?
These are some of the official LUNA social networking sites. Please refer because it can help you update the latest information and news about the project, the value of this coin.
- Home page: https://terra.money/
- Twitter : https://twitter.com/terra_money
- Telegram : https://t.me/terraglobal
- Reddit : https://www.reddit.com/r/TerraLuna/
- Medium : https://medium.com/terra-money
- Github : https://github.com/terra-project
Official LUNA Twitter Channel
Note, you need to double check to make sure that these social networking sites are official LUNA coin pages. There are many fake and scam LUNA websites on the market. Therefore, you should seek information from reliable sources to avoid losing money and personal information.
How is LUNA allocation at the moment?
As of today, LUNA is having a supply of up to 1 billion tokens. And it is distributed as follows (note these values can change at any time)
- 1% is for program developers.
- 3% for affiliate programs.
- 0.5% is for emergency distribution.
- 20% for community funds.
- 40% for the ecosystem and strategic partners.
- 20% for reserve fund.
- 15% for Private Sale and Public Sale events.
Epilogue
After the information has just been shared above, hope you know why Luna crashed? It can be said that, despite experiencing fluctuations, in 2023 this currency has had a lot of recovery and can return to invest. However, many factors need to be considered before deciding to participate.