What happened to the Luna cryptocurrency - is it dead? Today's news
All of us are aware or perhaps many of us, the cryptocurrency luna has fallen to a very incredible value, it is really hard to believe what is happening with luna guys, this currency many of us are giving it up for dead and it is something to keep in mind.
The cryptocurrency was positioned in the top 10 of the best cryptocurrencies by market capitalization and is currently in the top 32.
The LUNA stablecoin has some differences with other stable cryptocurrencies and the main difference is that this is an algorithmically generated token based on financial engineering guys. USDT for example is backed by financial assets and other derivatives.
By this I mean this was already in mind, some people knew this, even in a few moments I will show my portfolio so you can see I made a small investment something I highly recommend guys. I really can't know what will happen in the future with this cryptocurrency guys. At the time of writing this article the cryptocurrency is at 0.0002 cents on the dollar.
These algorithms that instead of having some financial backing of some kind like treasury bills or other type of backing to make their sale accessible and easy for everyone at times when the crypto market is in this way. These type of algorithms rely on some type of engineering based financial algorithm this ah my opinion makes crypto very volatile or even almost somewhat unfavorable for some holder's.
If we get into a dialogue about TerraUSD, if its current price falls much more than expected then this means that the cryptocurrency definitely died, the owners of this cryptocurrency can "burn" the coin, withdraw it definitely from circulation whenever they want guys. In return, they get a dollar of new Terra (LUNA) units, which increases the supply and therefore impacts the price of LUNA downwards (and drives the UST up).
This has ultimately led to a cycle of death that Swiss exchange SwissBorg explains perfectly: "If the price of LUNA is under pressure, UST holders may be fearing that the UST peg is at risk and decide to redeem their UST positions. To do so, UST is burned and LUNA is minted and sold into the market. This would further accelerate the LUNA price decline, pushing more UST holders to sell their USTs."
Here we can notice a very severe plummet and this gives me good impression to invest guys because as I said before this cryptocurrency has a price of 0.0002$ and I currently have 40000 Terra Luna tokens and if this coin goes up to 10 cents I am going to see a lot of profit.
I really think I'm in for a good investment but we'll see about that later guys, thanks for reading!
Kolus290
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