Terra (LUNA) price has fallen to an all-time low of $2.70, despite founder Do Kwon’s proposal to fix the UST link.
The token dropped 91% in the past 24 hours with losses showing no signs of slowing down. The price crash of LUNA dropped it from the top 10 cryptos to 43rd place.
The proposal van Do Kwon came after rescue efforts by LUNA Foundation Guard (LFG), which oversees the UST stablecoin, largely failed. The LFG had attempted to raise more than $1 billion from investors.
Terra (LUNA) prices do not exceed $5
LUNA spot prices on Binance have reached a minimum of $2.70. Meanwhile, the LUNA perpetual contract rate was in negative territory, while the 24-hour transaction volume reached $25 billion. Anchor Protocol, Terra’s largest DeFi protocol, saw its total locked value drop nearly 90% in the past week and now stands at approximately $2 billion.
Some reports suggested that LFG’s proposal to raise more than $1 billion in capital from Jump Crypto, Celsius, Jane Street and Almeda has failed. The LFG was intended to raise capital to balance the relationship between Terra and UST. LUNA would be purchased at a 50% discount, which would have been in a one-year lock-up period.
Meanwhile, exchanges in South Korea such as Upbit and Bithumb have issued investment warnings due to LUNA’s wide price swings.
After the funding failed, Do Kwon said in a tweet that the only way is: to absorb the stablecoin stock that wants to stop sooner UST can start with repeg.
“We endorse the community proposal 1164 to increase the base pool from 50 million to 100 million SDR*) decrease PoolRecoveryBlock from 36 to 18. This will increase the coin capacity from $293 million to ~$1200 million.”
The price of Terra (LUNA) could potentially plunge lower as Do Kwon and LFG proposals have failed to support the Terra economy and UST’s peg to the US dollar.
Bitcoin (BTC) Price Remains Above $30,000
While the LFG losses are aimed at supporting UST stability with bitcoins during higher volatility, the price of Bitcoin (BTC) has continued to rise for the past two days.
At the time of writing, Bitcoin is trading at $31,863, up nearly 2% in the last 24 hours. While the UST price is at USD 0.49, down 45% in the last 24 hours.
Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and currently covers all the latest updates and developments in the crypto industry.
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This post Terra (LUNA) Hits $2.70 Low, Can Kwon Fix It?
was published first on https://coingape.com/terra-luna-price-hits-all-time-low-of-3-02-do-kwon-fix-this/