Essays on Life – What Happened to Terra ($LUNA)?

foreword

For those who have a little exposure to the Cosmos ecosystem, they may have some knowledge about Terra ($Luna). Terra is a blockchain network created with the Cosmos SDK software development kit to build stable coins. The goal of Terra is to create To make the price of the global payment system more stable, I also often use Cosmos to convert the currency of the ecosystem into a stable currency ($UST) to lock in profits, and it is also one of the most promising currencies recently. What happened recently? What's the matter?

For investors who may not be aware of the Terra model as an algorithmic stablecoin, the $LUNA token acts as a reserve currency backing the network's $UST token, in addition to some Bitcoin and other digital assets backing this stablecoin, Terra through minting And destroying its native token $LUNA to maintain its peg, in simple terms, the stability of $UST largely depends on the stability of $LUNA , @Taiwan Crypto's article "What is Terra (Luna)? Introduction and future development of Luna Coin – Is Luna one of the most surging coins recently? , happened to mention Terra's hidden worries, and what happened now happened to be one of the hidden worries he mentioned.

In conclusion, now that $UST is off the peg with $LUNA falling rapidly, the price of $UST theoretically needs to stay at $1, but it has dropped to $0.68 before, indicating that there may be serious problems.

Recent Price of $LUNA

Recent prices for $UST

postscript

The stablecoin market is very important for the normal operation of many aspects of the encrypted virtual currency market. As the consideration relationship between encrypted virtual currency and real currency, if people lose confidence in the potential value of stablecoins, the possibility of market contagion is real. Therefore, many investors are paying attention to the recent performance of Terra's $LUNA and $UST, and we, who may not have many assets on the Terra blockchain, may be able to wait and see, if some assets are on the Terra blockchain Yes, it might be worth thinking about your next steps.

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Cosmos Ecosystem Airdrop Series

After LikeCoin entered the Cosmos ecosystem, everyone also took some airdrops. In completing these airdrop tasks, they had a more or less in-depth understanding of the blockchain. Standing outside the door and watching the sky, it is better to get started and learn. I hope that my previous experience can be helpful to those who come here.

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