SAN FRANCISCO (KRON) – Luna, a cryptocurrency tied to the stablecoin TerraUSD, is now basically worthless. According to coinmarketcap.com, Luna was worth $0.01862 as of midday Thursday.
The downfall happened remarkably fast — within the space of 24 hours. Luna had been one of the most valuable cryptocurrencies.
So what is Luna anyway?
Luna is a South Korean-based traditional cryptocurrency whose value is tied to a stablecoin called Terra. Terra, in turn, is supposed to be tied to the United States dollar. A mechanism was supposed to work so that people could trade one for the other if one of the two went under that price.
If Terra traded for less than $1, people could exchange it for $1 worth of Luna. If Terra traded for more than $1, people could buy $1 of Luna and then exchange it for more than a dollar of Terra.
Why did it collapse?
The crypto market is in the midst of a slump, as investors drop what they perceive as riskier bets amid fears of a recession.
Bitcoin, for example, reached an all-time high of $68,990 in November 2021. Today, it’s worth $28,679.
Amid this, it appears that as more Terra/Luna investors decided it was too risky and started selling, it spiraled.
Reddit isn’t OK
National suicide hotlines for many nations are pinned to the top of the subreddit for Terra/Luna, including America’s which is (800) 273-8255.
One poster wrote that Luna’s time is finished.
“It’s time to pull the plug which represents selling your remaining capital and let go so you can grieve your loss and move on with life,” Overall-Exchange-242 wrote. “I am very sorry for your loss.”
Another said they lost $15,000.
“I should’ve cashed put when it was $100 then I would have been at up $25,000,” No-Forever2056 wrote.
Finally, Questionkid24 is telling people this is not just a temporary setback.
“Don’t be stupid and buy Luna right now. I’m telling you and WARNING you TAKE YOUR MONEY OUT AND RUN,” they wrote. “Ladies and Gentlemen…I know this is probably heart breaking for a lot of You but this project is Dead, It’s gone it’s deceased.”