2 years ago
LUNA, the in-house token of Blockchain protocol Terra, is undergoing large changes which are causing intrigue and despair successful adjacent measure.
Data released connected May 13 confirms that overnight, the embattled cryptocurrency’s proviso expanded to an eye-watering 6.9 trillion LUNA.
6,900,000,000,000 LUNA, astir zero value
After a tumultuous week successful which Terra attempted to rescue LUNA on with its failing U.S. dollar stablecoin, TerraUSD (UST), things person gone from atrocious to worse.
Despite immense income of BTC and loans to prop up the market, some tokens person continued to hemhorrage value.
At the clip of writing, LUNA/USD traded astatine an astir imperceptible mean of $0.00005474, according to information from CoinMarketCap.
To the dismay of those hoping to agelong astatine antecedently already debased levels, LUNA could not halt its decline, and the latest measures by Terra look to person exacerbated the situation.
Supply increases, which began successful earnest connected May 8, took a crook for the nonsensical successful caller days successful a determination reminiscent of hyperinflationary fiat currencies.
On May 11, 1.8 cardinal LUNA was minted and added to the existing 764 cardinal supply. If that were not enough, May 12 saw 185 cardinal much tokens appear.
Finally, connected May 13, Terra minted 6.7 trillion LUNA — an summation of 3,483% astatine once.
RIP pic.twitter.com/LXfx1ngu2A
— hodlonaut ⚡ (@hodlonaut) May 13, 2022“There’s bitcoin, and there’s shitcoins,” fashionable commentator Hodlonaut, creator of Bitcoin taste assets Citadel21, responded during the May 12 print.
After the full LUNA proviso deed 6.9 trillion, Hodlonaut drew a enactment nether the altcoin’s existence.
Worse than OneCoin?
As spectacular arsenic the ostentation is, LUNA’s illness is what is drafting the astir attention, arsenic older marketplace participants comparison the events to the demise of crypto ponzi schemes specified arsenic BitConnect and OneCoin.
Related: Bitcoin terms sees 'hell of a reversal candle' arsenic 168,000 BTC leaves exchanges
David Hoffman, co-founder of crypto newsletter Bankless, laid bare the standard of the LUNA implosion versus BitConnect with a comparative marketplace headdress chart.
LUNA vs. BitConnect marketplace headdress chart. Source: David Hoffman/ Twitter“LUNA truly is the biggest clump i've ever seen successful crypto,” fashionable trader MDXCrypto continued.
“worst than Bitconnect, worst than Onecoin, worst than Axie, worst than them all.”As Cointelegraph reported, Terra has pledged to revive the full ecosystem, nevertheless shutting down the LUNA blockchain wholly hours later.
“Even if LUNA and UST past this episode, successful the agelong tally determination indispensable beryllium immoderate genius protocol changes effected to bolster marketplace assurance that the marketcap of LUNA volition ever transcend the UST float,” Arthur Hayes, erstwhile CEO of derivatives level BitMEX, wrote successful the archetypal of a bid of blog posts connected stablecoins, titled “Luna Brothers, Inc.” released May 13.
“I person nary thought however to execute this.”LUNA/USD, having been pulled from large speech Binance, traded astatine $0.0077 connected Bitfinex astatine the clip of writing, according to information from Cointelegraph Markets Pro and TradingView.
LUNA/USD 1-hour candle illustration (Bitfinex). Source: TradingViewThe views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.
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