May 12, 2022 10:44 UTC
May 12, 2022 at 10:44 UTC
LUNA, UST Move Nearer to Zero, Do Kwon Asks Holders to ‘Stay Strong’
Do Kwon has urged holders of Luna to “stay robust,” because the value moves ever nearer to zero. Following the UST stablecoin losing parity with USD, costs have plunged, falling to a replacement low this morning.
LUNA, UST Tumble Toward Zero
As of writing, LUNA/USD is trading at $5.45, that is marginally above its earlier low of $4.21.
To put things in perspective, costs are down nearly 90% from yesterday’s peak of $34.28, and solely seven days faraway from trading at a high of $88.40.
Following a short rally within the aftermath of it losing dollar parity, UST conjointly moved towards zero, striking a bottom of $0.2998 earlier nowadays.
This came but twenty four hours once it had been trading at $0.9486, but markets panic-stricken at an absence of communication from Luna founder Do Kwon, who was aforementioned to be performing on a “recovery set up.”
Although some are still assured within the premise of recursive stablecoins, it is, however, to be seen if UST can survive long enough to be a neighborhood of any future developments.
Kwon finally provided a a lot of substantial update to the Terra community only in the near past, noting:
I perceive the last seventy two hours are very powerful for all of you – I am concerned that I’m resolved to figure with all of you to weather this crisis, and that we can build our reply to this.
The Luna founder of UST said that “Before anything, the sole path forward is going to be to soak up the stablecoin offer that wishes to exit before UST will begin to repeg.” Kwon then provided some technical prospects for decreasing “the offer overhang of UST.”