Crypto Crash: Can Terra (Luna) Ever Recover?
The Terra (CRYPTO: LUNA) blockchain is powered by two cryptocurrencies: Terra and Luna. Terra is a stablecoin tied to the value of fiat currencies. For example, TerraUSD (CRYPTO: UST) is pegged to the U.S. dollar. And Luna is used to absorb stablecoin price volatility.
Earlier this week, TerraUSD lost its peg and the stablecoin saw its price plunge to $0.30. It has since regained some of its value, though its price is still well-below the $1 target. Not surprisingly, spooked investors have sold Luna hand over fist in an effort to distance themselves from the catastrophic meltdown. In fact, Luna has lost 99% of its value in the last few days.
Is this a buying opportunity? Or is the Terra blockchain in trouble?
Source Fool.com
