Update: LUNA fell a further 99.97% earlier on Friday and reached $0.000036.
A few days ago, Terra (LUNA) founder Do Kwon mentioned in an interview that “95% of the companies” entering the crypto space are going to “die”. He further added that there is “entertainment in watching companies die”. The statement sounds completely ironic as within 8 days of such a statement, LUNA has tumbled over 99%. Instead of 95% of the other coins dying, Kwon’s founded coin lost 95% of it’s value today and reached a mere value of a few cents.
Terra coin lost a massive 96.52% and traded at $0.02962 at 9:17 a.m. EDT on Thursday. The market capitalization of LUNA stood at $102 billion, losing 81.27%. Moreover, the 24-hour trading volume slumped by 22.58% to $5.3 billion. Also, the coin reached its all-time-low of $0.02961 recently and is heading towards a new record low.
Within the last 24-hours the coin dropped from its high of $5.45 to less than $0.03. Terra had earlier reached its all-time-high of $119.8 in the month of April and within a month lost substantial value only to make the situation worse. Recently, on May 6, 2022, it was trading in the range of $0.80 and suddenly plunged to $47 about two days ago.
On the other hand, TerraUSD, also known as “UST,” fell below its 1:1 peg to the dollar this week, roiling cryptocurrency markets that were already under pressure due to falling stock markets. This negative development has also fuelled the inevitable crypto crash that is currently bleeding the whole market.
Citadel, the major hedge-fund, was rumoured to be investing a hefty amount in Bitcoin (BTC) to ultimately purchase LUNA. However, on Thursday, the firm declared that it has nothing to do with trading such stablecoins and that the LUNA crash hasn’t affected them either. A statement on Bloomberg provided from the hedge-fund mentions that it “does not trade stablecoins, including UST”.
However, these rumours are continuously circulated on social media every now and then. Also, the LUNA crash has garnered attention to BlackRock too which was also thought to be investing money in Terra. On the contrary, the company never officially mentioned any such development.