The prices of Luna and its related stablecoin TerraUSD (UST) crash as the entire project appears to be in its final moments.
Source: The Block
LUNAUSD down -89.99%, USTUSD down -58.07%
UST is an algorithmic stablecoin that is expected to be pegged to the US dollar. A mixture of burn processes involving related token Luna is expected to keep it to its peg.
In the last few years, the mechanism has failed, with investors rushing to exit. Even though the Luna Foundation Guard (LFG) provided $1.5B in assets to help the stablecoin return to its peg, it has not been adequate.
The price of Luna has crashed below the $2 mark, sliding more than 88% in the last 24 hours. It has dropped from a high of $116 in April. The major reason Luna is being struck hard is its role in providing stability for UST.
At the same time, UST has fully lost its peg. It’s now down to $0.27, signaling stablecoin owners have lost nearly two-thirds of their value.