Why is luna crypto crashing

why is luna crypto crashing

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If their crypto holdings take a dive, it could affect a sister currency called Luna. A stablecoin is a cryptocurrency tanking to less than 1 suicide and sharing suicide prevention.

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PARAGRAPHAt the center of the collapse was a run on a blockchain-based borrowing wwhy lending protocol Anchor that promised high yields to its stablecoin UST.

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Terra Luna Classic - LUNC Developers Leaving Is This Good Or Bad?
Terra, the third largest cryptocurrency ecosystem after Bitcoin and Ethereum, collapsed in three days in May and wiped out $50 billion. The Terra-LUNA crash in May was triggered by the depeg of the ecosystem's stablecoin UST. It led to the unprecedented demise of a blockchain ecosystem. The price of Luna fell to nearly zero. As critics had predicted, the price of TerraUSD crashed in tandem, dropping from its $1 peg to as low as.
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It led to the bankruptcy of Three Arrows Capital, a major crypto hedge fund that was heavily invested in the Terra ecosystem. Terra 2. Why Was This a Problem? This deflationary protocol was designed to ensure there was long-term growth for Luna.