Stablecoins also provide the means for cryptocurrency loaning and borrowing, making them a foundational technology of DeFi. RJ Fulton is a writer who covers all things related to cryptocurrencies and electric vehicles. He believes these two industries have the potential to Forex eliminate many of the problems our world faces today. RJ keeps track of all new developments and loves making the complex easy to understand. He has been immersed in cryptocurrencies for the last five years and has followed the rise of electric vehicles for just as long.
The latter is a subsidiary of Terra Alliance, which consists of 16 e-commerce companies in East Asia. Terraform Labs has developed Terra, a blockchain platform that powers startups’ cryptocurrencies and financial applications. TerraUSD , pegged to the US dollar, is among these cryptocurrencies. Sign up for Market Wrap, our daily newsletter explaining what happened today in crypto markets – and why. The legal status of stablecoins in the US regulatory framework is a hot topic of discussion. On October 20, the Bitcoin price is trading slightly higher after recovering from the $18,990 double-bottom support level. In contrast, Ethereum fell nearly 1% to $1,293 during the early Asian session.
On May 9, 2022, UST’s price plummeted to as low as $0.68. The decrease came as the result of a broader https://www.apzomedia.com/investing-in-terra-ust-powered-by-luna/ market sell-off in all cryptocurrencies. LUNA dropped by as much as 60% in just a matter of days.
- RJ keeps track of all new developments and loves making the complex easy to understand.
- With a price pegged to the US dollar, TerraUSD is the first decentralized stablecoin to be scalable and yielding.
- The presented content may include the personal opinion of the author and is subject to market condition.
- Such an implosion has been seen in small-cap memecoins in the past, but never for something the size of luna, which had a market cap of over $40 billion just last month.
- Kwon’s immediate goal appears to be to return Terra’s native dollar-pegged stablecoin, UST, over $1.
In other words, Terra functioned more or less as promised until it didn’t. While completely avoiding his tweet in which he promised to compensate pre-depeg UST https://www.apzomedia.com/investing-in-terra-ust-powered-by-luna/ holders with USDT and USDC, Do Kwon answered why LFG is not in a position to compensate users. Terra Classic USTC observes a 12% rise in value in 24 hours.
What Is Ust Coin? What Is Terrausd Ust, What Does It Do?
Stablecoins are backed by holding an equivalent amount of fiat currency in reserves. LUNA is used as the reserve asset of TerraUSD and the native cryptocurrency. Therefore, if you want to mint a TerraUSD, only $1 worth of Terra’s LUNA token will be burned from the system. Kwon’s immediate goal appears to be to return Terra’s native DotBig ust crypto dollar-pegged stablecoin, UST, over $1. The impact on LUNA, which has dropped nearly 90% in the last 24 hours, is still uncertain. To absorb investors’ attempts to dump the defective stablecoin, Kwon has advocated boosting the supply of LUNA on the market. Todays top gainer is TerraClassicUSD with a +15.06% price increase.
Recently, the Terra Classic ecosystem was quite heated as a significant new update Forex was approved. According to this, the 1.2% tax burn protocol was changed to 0.2%.