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Can someone explain the TerraLuna crypto bankruptcy today?

quickfeet

Get Steppin’
Founder
Member
Joined
Feb 19, 2021
Messages
3,543
The TerraUSD stablecoin always relied on crypto LUNA for stability, allowing the stablecoin to be replaced with LUNA any time TerraUSD dipped below $1.

The algorithm connecting the coins was broken and when LUNA prices dropped with the rest of the crypto market, the stable coin that needed to remain a dollar collapsed to $0.35. The supply of LUNA started spinning out of control to try and correct the stable coin and I think something like a trillion LUNA were created yesterday to try and stabilize the TerraUSD. As a trillion LUNA were created the LUNA bag holders saw the value of their coins go to zero
 

tiderollsonu

A man from Nantucket
Founder
Joined
Jan 9, 2021
Messages
5,890
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