Luna Got Rekt, Bitcoin Reserve Comes into effect
Luna Got Rekt, Bitcoin Reserve Comes into effect
We're just starting off the week and the news is getting worse for Luna which is now at a pivotal junction and if market confidence doesn't return we could very much well see the end of what was supposed to be a new form of payment and emergence of the best algorithmic stable coin.
We have already seen UST total market crash from $20 Billion to $US14 Billion (at time of writing) with no end in sight and entering dangerous territory TerraForm Labs takes another hit having to deploy their Bitcoin reserves to maintain the UST peg. Despite TerraLabs Founder Do Kwon stating it is a move to instil market confidence Luna is already bleeding and if it continues to many more will sell putting the entire protocol at risk.
But lets be completely honest in the grand scheme of things it isn't too bad and seems to be a big case of FUD which is currently impacting everyone.
Luna and UST still maintain the top 10 and every token is crashing harder than a raver leaving a club at 7am the next morning. Although I would expect the hangover from this crypto crash to last a lot longer and its effects, a lot more harsh.
Speaking of harsh, Do Kwon has come under heavy criticism from the broader Twitter sphere that continues to challenge his position in the current conditions seeking clarification on how the Bitcoin reserve will operate.
From today's tweets it appears that LFG will be loaning out Bitcoin and UST and then providing arbitrage to maintain the UST peg which many are left scratching their heads over.
Given Luna's token price has dropped over 50% and continues to decline we could be building to a $45 price point as Luna is now trading under %US60.
I'm not too sure how this is going to pan out but it will be interesting to watch the events unfold and how Luna will react as well as the broader network.
Image sources provided supplemented by Canva Pro. This is not financial advice and readers are advised to undertake their own research or seek professional financial services
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