{"id":61262,"date":"2022-05-11T09:40:50","date_gmt":"2022-05-11T06:40:50","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61262"},"modified":"2025-09-05T11:09:40","modified_gmt":"2025-09-05T08:09:40","slug":"luna-price-plunges-86-as-ust-stablecoin-slides","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/luna-price-plunges-86-as-ust-stablecoin-slides\/","title":{"rendered":"LUNA price plunges 86% as UST stablecoin slides"},"content":{"rendered":"<p>On Wednesday, May 11, the Terra ecosystem&#8217;s algorithmic stablecoin TerraUSD (UST) again lost its peg to the US dollar. The cryptocurrency used to issue it, LUNA, collapsed by 76.4%, according to<a href=\"https:\/\/www.coingecko.com\/\"> CoinGecko<\/a>.<\/p>\n<div class=\"wp-block-text-wrappers-update-2 article_update\"><time class=\"gtb_text-wrappers_update_time\">May 11, 2022 | 07:46<\/time><span class=\"gtb_text-wrappers_update_head\">Update: <\/span><\/p>\n<p>The UST price fell below $0.23. LUNA was trading around $4 (down about 85.9% over the last 24 hours).<\/p>\n<p><script async=\"\" src=\"https:\/\/telegram.org\/js\/telegram-widget.js?19\" data-telegram-post=\"forklog\/25438\" data-width=\"100%\"><\/script><\/p>\n<\/div>\n<p>As of writing, the asset traded around $8.60. Earlier on Friday, May 6, the price of LUNA was above $80. The chart below shows that the current decline has been accompanied by a surge in trading volume.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/NXdd_6FqTzE-U2k5JvdFN9MAtr-qbSslLqpA8G3S7UFdR-ZsnjIgxcepHN7dopxlP1oH8oQbsp-KRDa1Ojg_QQ21VyV6nw96m6DvHZHtWkWz31Jt87f1FFOzqthayNyq6nleBf3XctwKA9e-nA\" alt=\"LUNA price collapsed 86% amid UST slump\"\/><figcaption>Hourly chart of LUNA\/USD on Binance. Data: TradingView.<\/figcaption><\/figure>\n<p>LUNA did not remain in the top 30 by market capitalisation. It has slipped 31 places.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/qneO0NfzkZel--A9RlI0-7wfvSsRWrphhu0veYVbHD8qFlGV2pbq9-CbO47UbiqZZovVB5bWzqLDhtsRhoaKgxeJx8tTLU-vk5jbEwninqPlAJTBOaBe9grS2jR_sB_krY6CnseGf-M1zGBXtQ\" alt=\"LUNA price collapsed 86% amid UST slump\"\/><figcaption>Data: CoinGecko.<\/figcaption><\/figure>\n<p>On May 8, UST briefly <a href=\"https:\/\/u1f987.com\/en\/news\/ust-stablecoin-briefly-lost-its-peg-to-the-us-dollar-amid-anchor-outflows\">lost its peg to the US dollar<\/a> amid outflows from the Anchor protocol due to the deposit yield falling to 17.87%.<\/p>\n<p>To protect the stability of UST and the Terra ecosystem as a whole, the Luna Foundation Guard (LFG) allocated loans for OTC desks totaling <a href=\"https:\/\/u1f987.com\/en\/news\/lfg-allocates-1-5bn-to-back-the-ust-peg\">$750 million in BTC and $750 million in stablecoins<\/a>.<\/p>\n<p>On May 10, UST again lost its peg \u2014 quotes <a href=\"https:\/\/u1f987.com\/en\/news\/ust-stablecoin-loses-dollar-peg-amid-crypto-market-collapse\">fell below $0.62<\/a>. On the same day, sources at The Block reported plans for LFG to raise $1 billion to stabilise the stablecoin.<\/p>\n<p>According to sources, the organisation is seeking funding from \u201csome of the largest in the industry investment firms and market-makers.\u201d The publication claims that as part of the deal investors would be offered to buy LUNA at a 50% discount.<\/p>\n<p>Before that, Terraform Labs head Do Kwon announced a plan to restore the stablecoin\u2019s price and its peg to $1. At the time of writing he had not disclosed details.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Close to announcing a recovery plan for <a href=\"https:\/\/twitter.com\/search?q=%24UST&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$UST<\/a>. Hang tight.<\/p>\n<p>\u2014 Do Kwon \ud83c\udf15 (@stablekwon) <a href=\"https:\/\/twitter.com\/stablekwon\/status\/1524049689510694916?ref_src=twsrc%5Etfw\">May 10, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>However rumors and <a href=\"https:\/\/u1f987.com\/en\/news\/ust-stablecoin-briefly-lost-its-peg-to-the-us-dollar-amid-anchor-outflows\">issuance of LUNA around ~80 million would not help stabilise the UST price. As of writing, the asset&#8217;s price was hovering close to $0.30.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/VLt9vtIJBQ72E-trO9mXMSt1WwU643aAxX2W_YUmJJdKnTsOJyPA9Fr32GF7VOo-uKx7P3f8kPsKw5H6fGOBIHeQEcoi_cC5GmMrP8L4O_QnnngMszgLn22wkh77nXVBjroOKKkgXJGOPPchdg\" alt=\"LUNA price collapsed 86% amid UST slump\"\/><figcaption>Hourly chart UST\/USD on Coinbase. Data: TradingView.<\/figcaption><\/figure>\n<p>Market capitalisation of the stablecoin fell by 2 billion tokens over four days.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/IoKgwWmyMBHFvHpG-LLqFcbFKPeK3mIOLMDDu_LBD2xuoME2ilRHDpDokSrh_dYWWrQkJRCvdyDHG2jNBVEfN8a49wzHv1DCzstLizrUjfP-0tqTcfIsCl99BxMg8s4gssjIsUk7ZlV9ifY8pw\" alt=\"LUNA price collapsed 86% amid UST slump\"\/><figcaption>Data: <a href=\"https:\/\/terra.smartstake.io\/anc\">SmartStake<\/a>.<\/figcaption><\/figure>\n<p>According to The Block Research analyst Miki Honkasalo, the fundraising attempt by LFG had \u201cfallen apart\u201d.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">A few hours ago started hearing that the Luna fundraise had fallen apart.<\/p>\n<p>Difficult to imagine any firm would put their reputation on the line back this dumpster fire.<\/p>\n<p>It\u2019s over.<\/p>\n<p>(deleted original tweet about this to not jump the gun, but now it seems clear)<\/p>\n<p>\u2014 mhonkasalo (@mhonkasalo) <a href=\"https:\/\/twitter.com\/mhonkasalo\/status\/1524284307098927104?ref_src=twsrc%5Etfw\">May 11, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abIt&#8217;s hard to imagine any firm would stake its reputation on a dumpster-fire. It&#8217;s all over\u00bb, \u2014 wrote he.<\/p>\n<\/blockquote>\n<p>Popular analyst Hasu noted that \u201cUST is worse than BitConnect.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">UST is worse than Bitconnect.<\/p>\n<p>At least Bitconnect didn\u2019t masquerade as a stablecoin. <\/p>\n<p>When your ponzi targets people\u2019s savings (not investment) portfolio, there is a special place in hell reserved for you.<\/p>\n<p>Half of CT influencers, VCs, and trading firms are complicit.<\/p>\n<p>\u2014 Hasu\u26a1\ufe0f\ud83e\udd16 (@hasufl) <a href=\"https:\/\/twitter.com\/hasufl\/status\/1524292545131565056?ref_src=twsrc%5Etfw\">May 11, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abAt least, BitConnect didn\u2019t masquerade as a stablecoin. When your financial pyramid targets people\u2019s savings (not investment) portfolio, there is a special place in hell reserved for you. Half of influential figures, venture capitalists, and trading firms are complicit\u00bb, \u2014 wrote him.<\/p>\n<\/blockquote>\n<p>As ForkLog noted in a recent exclusive, Anchor&#8217;s problems could <a href=\"https:\/\/u1f987.com\/en\/news\/ust-stablecoin-briefly-lost-its-peg-to-the-us-dollar-amid-anchor-outflows\">undermine Terra&#8217;s economy and the crypto markets<\/a>. <\/p>\n<p>Subscribe to ForkLog&#8217;s channel on <a href=\"https:\/\/www.youtube.com\/channel\/UCC9FnXTC8_ENzaNSO5cHQ6g\" target=\"_blank\" rel=\"nofollow noopener\"> YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Wednesday, May 11, the Terra ecosystem&#8217;s algorithmic stablecoin TerraUSD (UST) again lost its peg to the US dollar. The cryptocurrency used to issue it, LUNA, collapsed by 76.4%, according to CoinGecko.<\/p>\n","protected":false},"author":1,"featured_media":61263,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[807,852],"class_list":["post-61262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-stablecoins","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"54","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=61262"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61262\/revisions"}],"predecessor-version":[{"id":61264,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61262\/revisions\/61264"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/61263"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=61262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=61262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=61262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}