Luna crypto crashed due to its likeliness to terraUSD, a stablecoin linked to the US dollar. It is a digital currency that is pegged to the traditional one and when the UST decouple from the dollar earlier this week, prices fell.
Advertisement
Why did Terra Luna crypto crash?
Some experts have shared that the digital currency crashed due to overconfidence by its investors.
Advertisement
“It was overconfidence in the investors of last resort who had already backed the project. And reckless growth at a time the market was slowing down,” they shared.
How much was Luna before the crash?
Luna was trading as high as $100 per luna in April 2022, however, it crashed to zero this week (week 2 in May 2022). This caused the algorithm stablecoin UST to totally lose its peg to the US dollar.
Can Luna coin recover again?
Luna is very possible to recover from its downfall again, however, the particular time it will recover to meet the market sales is uncertain.
Leave a Reply