5 Ways to Increase Acceptability of Cryptocurrency: From Skepticism to Mainstream Adoption
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2022-05-11 | Selina Mathew
All bets are off when Terra's tokens become completely volatile, and a restoration to a dollar peg becomes improbable.
On May 11, panic gripped crypto markets when Blockchain protocol Terra failed to stabilize its bleeding crypto assets.
Both the firm's in-house token, Terra (LUNA), and stablecoin, TerraUSD (UST), saw additional severe losses on the day, according to data from Cointelegraph Markets Pro and TradingView.
Bitcoin has reached a questionable new "all-time high."
UST lost its peg to the US dollar after a major sell-off, which some said was "organized" to destroy the Terra ecology.
Attempts to shore up the peg when both LUNA and Bitcoin (BTC) reserves failed, and as the market became more confused, both UST and LUNA plummeted to levels unseen just days before.
Do Kwon, a co-founder, stated a "recovery plan" will be released soon, though details were few at the time of writing.
Other significant crypto corporations may be prepared to donate capital to maintain the peg, according to rumors circulating online.
On May 11, UST was trading at $0.27, after temporarily falling to $0.25, or 75 percent below the dollar parity.
LUNA/USD traded at $6.00 in May, falling almost 90% from the previous month.
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