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Earlier this morning, Zhu Su went on to express his unhappiness towards the Luna slide in a series of tweets. Zhu Su, the CEO of 3AC, conveyed remorsefulness and apologised for ignoring the frequent warnings from Terra’s ecosystem. 3AC is a former premier EMFX currency and crypto-asset shop. 

What’s going on with LUNA?

Some months back, Zhu Su publicly ridiculed Eth and began shilling Luna nonstop. As a result, many took his judgement and went on to attain massive amounts of Luna stablecoin.

Fast forward to this week, Luna’s market cap went from $12 billion to less than $1 billion in a couple of days, affecting a lot of investors and traders. Two days ago, the Luna coin’s market cap became lower than $DAI.

In the midst of this, Zhu Su apologized and stated that he was still rooting for the stablecoin, and was willing to help Terra in whatever way possible.

The Genesis of Terra’s Downfall

The controversial crash of the Terra USD stable coin has caused panic in the crypto market. Terra’s LUNA/USD officially halted blockchain production when the blockchain’s native token slammed a low of $0.000033 on Thursday. 

Terra network officially confirmed the block officially breaking off at 7607789. Terra Validators have made such a decision, while they come up with a plan to reconstitute and then distribute a new token to the rest of its members in its ecosystem.   

Before now, Terra has been criticized for feigning an excellent image around Luna. Terra was largely known for steadily targeting trends such as stablecoin, L1 chain, DEX, etc., but attacking other projects including ETH. 

The recent meltdown in the crypto world which has wiped off billions of dollars in the market is largely contributed to, by the ongoing miseries of TerraUSD or UST, which is supposed to be pegged equivalently to the U.S. Dollar ($1).

From the inception, Luna’s structure was deeply flawed as it heavily reflected traits of an under stabilised coin, not to talk of the economic complexities that arose. 

Meanwhile, Terra’s Blockchain has not been the only casualty from the stablecoin’s turmoil. In the last 24 hours, Bitcoin has traded up 8%, after dropping to levels that have not been seen since late 2020 this week. 

Currently, UST is trading around 14 cents or even less in different parts of the market.  Luna and UST’s close association set a catalyst to Luna’s demise. With UST losing its peg, LUNA is now worth $0.  

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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