The price of Terra (LUNA) has fallen below $1, despite founder Do Kwon’s proposal to fix the UST peg.
The coin is down 98% over the past 24 hours, with losses showing no signs of slowing down. LUNA’s price crash saw it fall from the top-10 crypto to the 43rd position.
Proposal Dow Kwon came after rescue measures by the Luna Foundation Guard (LFG), which oversees the UST stablecoin, largely failed. LFG attempted to raise more than $1 billion from investors.
Terra (LUNA) prices $5 . fail to keep above
The spot price of LUNA on Binance has reached a low of $0.83. Meanwhile, the LUNA perpetual contract rate was in negative territory, while 24-hour trading volume reached $25 billion. Terra’s largest DeFi protocol, Anchor Protocol, saw its total value locked sync nearly 90% last week, which is now around $2 billion.
Some reports suggested that LFG’s proposal to raise more than $1 billion in capital from Jump Crypto, Celsius, Zen Street and Alameda failed. The purpose of LFG was to raise capital to balance the Terra and UST relationship. The LUNA was to be purchased at a 50% discount, which would have been a one-year lockup period.
Meanwhile, exchanges in South Korea such as Upbit and Bithumb have issued investment warning notices due to the large fluctuations in the price of LUNA.
After the funding failed, Do Kwon said in a tweet that there is only one way. To absorb the stable money supply who wants to exit first Ust You can start ragging.
“We support Community Proposition 1164 to increase the basepool from 50 million to 100 million SDR*.
The price of Terra (LUNA) could possibly go lower as the proposals of Do Kwon and LFG have failed to support the Terra Economy and UST with US Dollar.
Bitcoin (BTC) Price Remains Above $30,000
While the LFG losses are aimed at supporting UST stability with bitcoin during times of high volatility, the price of bitcoin (BTC) has been rising steadily over the past two days.
At the time of writing, bitcoin is trading at $31,863, up by almost 2% over the past 24 hours. Whereas, UST traded at $0.49, which is down 45% in the last 24 hours.
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