Terra

Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic. Due to limited liquidity, LUNA sell orders will not be accepted from 10:51 PM - 11:11 PM CT. Please submit your orders outside of this window.

On Thurs. May 25, Terraform Labs announced that the Terra community had approved the creation of a new blockchain, Luna 2.0. The creation of this new chain is a response to unprecedented volatility on the Luna 1.0 chain, which caused the price of the original LUNA and UST to collapse almost to zero. 

As part of the migration, the former asset LUNA will become Luna Classic, or LUNC. A portion of LUNA holders will be eligible to receive an airdrop of the new token (LUNA), per the terms outlined by Terraform Labs.

The new Terra blockchain will utilize the new LUNA, and will not include the UST stablecoin. 

On 9 May, after nearly 18 months of steadily holding its value against the US dollar, the so-called stablecoin TerraUSD (UST) became unpegged. The uncoupling triggered a cascade response that ultimately crashed UST and the Terra (LUNA).

TerraUSD (UST) is a stablecoin, which means it is a cryptocurrency pegged to a fiat currency. In this case, it is designed to be pegged to the US dollar. Stablecoins are intended to allow investors to hold crypto assets with less volatility, and trade a dollar equivalent without needing to cash out their positions. 

UST is considered an algorithmic stablecoin because instead of being backed by assets such as cash or cash equivalents, it is supported by on-chain code that facilitates a change in the supply and demand between UST and LUNA.

LUNA is the cryptocurrency that works in unison with UST in an effort to keep UST in 1:1 parity with the US dollar. One dollar of LUNA can always be converted at a 1:1 ratio to 1 UST. 

For example, if LUNA is trading at $10, then it can be redeemed for 10 UST, and 10 UST can be redeemed for 1 LUNA. If UST rises above its $1 peg to $1.01, then traders can swap 1 USD of LUNA for 1 UST. This trade burns 1 LUNA and mints 1 UST, which can then be sold for 1.01 USD. 

If UST rises to $1.02, then traders can sell for a 2 cent profit, and so on. 


In theory, increasing the supply of UST and lowering the supply of LUNA brings the price of UST back down until it reaches $1. Conversely, if UST drops below the $1 peg, then traders will be incentivized to buy 1 UST for 0.99 USD, which can then be swapped for 1 LUNA. 

This move burns UST and mints LUNA, sending UST higher towards the $1 peg.

UST lost its peg to the dollar starting on May 8th following large withdrawals of UST from Terra’s DeFi protocol Anchor. UST fell quickly, and struggled to regain its peg because the burning of UST and minting of LUNA couldn’t keep up. 

UST descended rapidly as the prolonged de-pegging led to uncertainty and a snowball effect of larger withdrawals. 


A significant share of circulating UST was locked on Anchor, a Terra-based lending and borrowing protocol that paid users 19.5% to stake UST. 

The LFG used up about $2.9 billion of its bitcoin reserves in an unsuccessful attempt to revive UST. 

WSJ 
Decrypt 
Bloomberg

*This content is for educational purposes and is not investment advice.

The head of the Office of the Comptroller of the Currency (OCC) is reiterating the risks of investing in crypto assets following the Terra (LUNA) collapse. In a new interview on Yahoo Finance Live, OCC Acting Comptroller of the Currency Michael Hsu says Terra's crash unveiled the fragilities of the crypto space. “I think the […] The post US Banking Regulator Issues Crypto Warning, Says Terra (LUNA) Collapse Exposed Three Industry ‘Fragilities' appeared first on The Daily Hodl.

US Banking Regulator Issues Crypto Warning, Says Terra (LUNA) Collapse Exposed Three Industry ‘Fragilities'

Over two weeks after the Terra LUNA and UST fallout, a whistleblower dubbed “Fatman” published an alleged chat log between the project's co-founder Do Kwon, Terra validators, and infrastructure providers from the Terra blockchain community. If the chat log is legitimate, Fatman claims the document proves over 50 people “knew about the [network] halt before […]

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In response to criticism on Twitter, Kraken CEO Jesse Powell is defending his exchange's decision to list the new Terra 2.0 (LUNA) crypto asset. Kraken listed the new LUNA on Saturday with the altcoin being airdropped to holders of the previous LUNA, now Luna Classic (LUNC), following its collapse in early May after the Terra […] The post Kraken CEO Jesse Powell Defends Listing of New Terra (LUNA) After 50% Crash in Just a Few Days appeared first on The Daily Hodl.

Kraken CEO Jesse Powell Defends Listing of New Terra (LUNA) After 50% Crash in Just a Few Days

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The Commissioner of the Commodity Futures Trading Commission (CTFC) says immediate regulatory actions are needed to safeguard crypto traders after Terra (LUNA) and its stablecoin TerraUSD (UST) collapsed in early May. In a new interview with Yahoo! Finance, Caroline Pham says it's important to enact a regulatory framework that would shield retail crypto investors from […] The post Terra (LUNA) Blow-Up Requires Immediate Action From Regulators To Protect Crypto Investors: CFTC Commissioner appeared first on The Daily Hodl.

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Following the death spiral involving the Terra (CRYPTO: LUNA) collapse that wiped off $40 billion worth of investors' money, the UK government has released a Consultation Paper on stablecoins, to mitigate financial stability issues that may materialize should a firm that has reached systemic scale, fail. In January 2021, the Treasury issued a consultation and call for evidence inviting views from stakeholders on the UK regulatory approach to crypto-assets and stablecoins.

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The new Terra blockchain Phoenix-1 has been operating since Saturday morning May 28, 2022, and on that day, millions of new LUNA tokens were dispersed to luna classic (LUNC) and terrausd classic (USTC) holders. However, on Tuesday the Terra development team revealed that some Terra token owners “received less LUNA from the airdrop than expected,” […]

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Mirror Protocol, a DeFi application built on the Terra (CRYPTO: LUNA) blockchain, has seen $2 million in user funds drained over the weekend thanks to a pricing error. What Happened: According to a May 29 alert from Mirroruser on the protocol's community forum, the Mirror Protocol suffered an exploit on its mBTC, mDOT, mETH, and mGLXY synthetic asset pools.

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The new Terra 2.0 (LUNA) crypto asset dropped by nearly 80% immediately after founder Do Kwon announced its launch over the weekend. The new altcoin was airdropped to holders of the old LUNA following its collapse in early May, after the Terra community voted for the genesis of a new blockchain. Launching near the $18 […] The post New Terra (LUNA) Loses Nearly 80% of Its Value Hours After Founder Do Kwon Announces Airdrop appeared first on The Daily Hodl.

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Korean prosecutors have reportedly launched an official investigation into the collapse of TerraUSD and luna by summoning all Terraform Labs employees. The post Korean prosecutors summon all Terraform Labs staff in UST collapse probe: JTBC appeared first on The Block.

Korean prosecutors summon all Terraform Labs staff in UST collapse probe: JTBC

Terra has launched a new version of its failed luna cryptocurrency, which plunged to $0 this month.

The luna cryptocurrency has been resurrected after its $40 billion collapse. It's already crashing

Earlier this month, major cryptocurrency Terra (CRYPTO: LUNA) collapsed and lost over 97% of its value as its native stablecoin TerraUSD (CRYPTO: UST) fell to under $0.30 — with nearly $24 billion of capital evaporating from the two tokens' market values, all within 24 hours. What Happened: While many have lost fortunes with the spectacular market crash that some suggest was caused by a faulty protocol design, others made fortunes from Terra's rise and sold before.

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Terra (CRYPTO: LUNA) launched its new blockchain today, followed by an airdrop of new LUNA 2.0 tokens to users as part of a broader plan for revival.  The holders eligible for the LUNA airdrop can now view their wallet balances on the new chain.

News for Terra Crypto (LUNA)