Crypto crash: What happened to Terra LUNA and UST and will they ever recover?
Terra (LUNA) crashed by more than 99 per cent in May 2022, wiping more than $40 billion from its market cap On 9 May, after nearly 18 months of steadily holding its value against the US dollar, the so-called stablecoin TerraUSD (UST) became unpegged. The uncoupling triggered a response that would ultimately crash not only UST and the Terra (LUNA) cryptocurrency, but also contribute to bitcoin and the broader crypto space seeing a major downturn that it is yet to fully recover from. So how did it happen and what happens next for investors, the project and the wider crypto space? Terra LUNA and UST: What happened? Both UST and LUNA exist on the Terra blockchain and are overseen by the non-profit Luna Foundation Guard (LFG), which stockpiled roughly $3.5 billion in bitcoin and other cryptocurrency in the months leading up to the crisis in order to mitigate against such an outcome. UST is an algorithmic stablecoin, which means it is not backed up by dollar reserves in order to remain pegge...
