LUNA, the native token of the blockchain protocol Terra, is undergoing major changes that simultaneously cause intrigue and despair.
Data released on May 13 showed that overnight the cornered supply of cryptocurrencies expanded to an astonishing 6.9 trillion LUNA.
690,000,000,000,000 LUNA, almost zero value
After a turbulent week in which Terra attempted to rescue LUNA along with the failed US dollar stablecoin TerraUSD (UST), things got worse.
Despite BTC’s massive sales and lending to back the market, both tokens continue to show tremendous value.
At the time of writing, LUNA/USD was trading at an almost imperceptible average of $0.00005474. coin market cap.
To the disappointment of those wishing to buy from previously already low levels, LUNA was unable to stop the decline and Terra’s latest move appears to have exacerbated the situation.
The increase in supply, which began in earnest on May 8, is a movement reminiscent of hyperinflationary fiat currencies, and has recently turned into a nonsensical direction.
On May 11th, 1.8 billion LUNA were issued, adding to the existing 764 million supply. If that wasn’t enough, 185 billion more tokens appeared on May 12th.
Finally, on May 13th, Terra issued 6.7 trillion LUNA, an increase of 3,483% at a time.
May the souls of the deceased refrain pic.twitter.com/LXfx1ngu2A
— hodlonaut ⚡ (@hodlonaut) May 13, 2022
Popular critic Hodlonaut, creator of the Bitcoin cultural resource Citadel21, wrote in a print on May 12, “There is Bitcoin and there is shitcoin.
After the total LUNA supply reached 6.9 trillion, Hodlonaut drew a line under the existence of altcoins.
Worse than OneCoin?
As inflation is astonishing, LUNA’s collapse is most noteworthy. Because older market participants compare this event to the end of crypto Ponzi scams like BitConnect and OneCoin.
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David Hoffman, co-founder of the cryptocurrency newsletter Bankless, said: lying barefoot The magnitude of the BitConnect vs LUNA implosion with a comparative market cap chart.
“LUNA is the largest cluster I have ever seen in cryptocurrency.” Popular Trader MDXCrypto continued.
“Worst than Bitconnect, Worst than Onecoin, Worst than Axie, Worst than all of them.”
As Cointelegraph reported, Terra promised to revive the entire ecosystem, but nevertheless shut down the LUNA blockchain entirely after hours.
Arthur Hayes, ex-CEO of derivatives platform BitMEX, said: “Even if LUNA and UST survive this episode, there must be a genius protocol change to influence to strengthen market confidence that LUNA’s market cap will always exceed UST’s antifreeze over the long term. do,” he said. first in a series blog post Released on May 13th on a stablecoin called “Luna Brothers, Inc.”.
“I don’t know how to do this.”
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