Bloodbath in the crypto market is now in its worst stage and some cryptos’ survival is in danger now. One of the leading crypto currencies, Terra (Luna) plunged to $1 with over 90% fall after the de-pegging issue prompted in UST on May 9.
The downward momentum in the coin has drowned over a $39 billion market cap after it fell from almost $40 billion to $1 billion in less than a month.
The disastrous rolled down has also been seen in its stablecoin, UST after its de-pegging issue. In less than 24-hours, the market price of UST dropped 70% to a low of $0.30 and is currently at $0.45. Ultimately, UST’s market cap is also at stake after losing nearly $10 billion in 24-hours.
As UST was already facing turbulence to peg its value with $1. On May 9, UST hit a low of $0.98, which was common for a while. After being more than 24 hours in the same state, investors have suspected the heavy rumbling scenario in UST and LUNA.
One of the reasons behind the de-pegging issue generated in UST was a large number of withdrawals from defi protocols such as Anchor Protocol, Curve, and others.
However, Do Kwon, the CEO of Terraform Labs has tried to resist the downfall by depositing $100 million out of $150, which he withdrew earlier. But now his moves seem to have failed.
Reactions From Investors
As UST is heading toward zero, many intellectuals and investors are predicting the end of the stablecoin project. People who invested largely in Terra and UST from their income are falling into a guilty and anxious state.
The unusual diminution of crypto is also breaking the trust of many investors who were seeing its potential future.
On Twitter, one user named Awawat came forward to reveal the suicidal death of his friend due to a heavy loss in his crypto investment.
He writes, “Heard about a friend of a friend who took his life after losing family savings on Anchor last night. This market is now extremely predatory and it’s a good time to reassess whether you want to play the game or not. Good time to check on friends too”
