Knives are out as Luna dives and UST briefly breaks its peg
Knives are out as Luna dives and UST briefly breaks its peg
Well, well, well what a scene that is occuring over at Terra (Luna) Network with some significant FUD brought on by a single wallet dump.
It was only a few days ago where Do Kwon paired 1 Billion UST and provided liquidity over at Curve Finance one of the leading stable coin Decentralised Exchanges (DEXs) on the Ethereum Network.
It only took someone a matter of seconds to cause Terra (Luna) Network to spiral into mass losses with a single wallet selling $US300 Million worth of UST on Curve Finance and Binance exchange 1source.
The sale accounted for 62% of total trades and it was a large enough sell off to cause others to start dumping UST in fear and it has spread its wings to Luna as UST is being dumped it is being burned into Luna causing everyone else left holding the bag and wearing the losses.
Luna suffered a 15% dive in value the largest decline to date in this Crypto crash but it is showing signs of recovery or atleast consolidating around the $US61 mark per Luna token.
It is yet to be seen if the Luna Foundation Guard Bitcoin reserves have kicked in and with Do Kwon investing $US1.5 Billion in Bitcoin right before the market crash we are yet to see if it has been switched on.
However, Luna continues to progress with a new listing on Thailands largest crypto exchange Bitkub which is also majority owned by a mainstream bank Siam Commercial Bank so we can expect to see Luna grow in South Asian markets.
Despite all this UST continues to stay relatively pegged at .99c US providing some arbitrage opportunities for investors.
So what are your thoughts, will Luna bounce back?
▶️ 3Speak
