Do Kwon has advised LUNA investors to “stay strong” as the price approaches zero. Prices have plummeted since the UST stablecoin lost parity with the US dollar, hitting a new low this morning.
LUNA, UST Tumble Toward Zero
LUNA/USD is now trading at below $1
To put things in perspective, prices have dropped over 98% and are only seven days distant from a high of $88.40.
Following a brief rebound following the loss of dollar parity, UST has also drifted towards zero, reaching a low of $0.2998 earlier today.
Markets worried about a lack of communication from LUNA founder Do Kwon, who was supposed to be working on a “recovery plan,” less than 24 hours after it was trading at $0.9486.
Although some people believe in algorithmic stablecoins, it is unclear whether UST will live long enough to participate in future advancements.
Kwon just issued a more comprehensive update to the Terra community, 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 repay.” Kwon then provided some technical prospects for decreasing “the supply overhang of UST.”
The UST de-pegging scandal caused the cryptocurrency Terra to drop by almost 85%. Terraform Labs’ founder told his Twitter followers that the company will rebound.
Kwon explained that the Terra token recovery strategy was nearly complete.
Do you believe LUNA and UST can recover their confidence following this big crash?
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