The price of Luna coin collapsed, theTerra coin price plummeted by 98%, and 150,000 people liquidated their positions.
On May 12, the TerraUSD (UST) stablecoin was decoupled from the U.S. dollar and fell as low as $0.609. UST is driven by the Terra chain and its native asset, Luna coin. After two consecutive days of plummeting, the price of the cryptocurrency Luna coin once fell below $2, and the market value once fell to $1.1 billion.
It is reported that among the cryptocurrencies, Luna’s market value in circulation once ranked fifth in the entire network, and its status is evident. In addition, Luna Coin acts as a “shock absorber” for UST price fluctuations, helping traders always exchange $1 worth of UST for $1 worth of Luna Coins.
According to coingecko, Luna coin once soared from the lowest point of 0.12 US dollars to 119.5 US dollars, and also reached the highest market value of 41 billion US dollars (about 270 billion yuan).
Due to the continuous plummeting of cryptocurrencies, 150,000 people have liquidated their positions, and 107.3 billion funds have exploded in the past 24 hours.
On May 11, South Korean cryptocurrency entrepreneur Do Kwon, the largest holder behind UST, tweeted his latest plan to increase the BasePool from $50 million to $100 million in SDR, and the Pool Recovery Block from 36. Blocks are reduced to 18 blocks.
This will increase the UST minting capacity from $293 million to $1.2 billion, which will increase the minting capacity from $293 million to $120 million.
It is worth mentioning that the Federal Reserve released its semi-annual Financial Stability Report on May 9, warning that stablecoins aimed at pegging to hard currencies such as the U.S. dollar may depreciate under pressure or lose their liquidity backed by assets.