In less than a month after the deployment of the new blockchain, LUNA 2.0, the token’s price has declined by over 77%. Early this year, the Terra blockchain was hailed to be the future of cryptocurrencies, as it seemed to promise several developmental advances. Then the protocol encountered a great shocker when its UST stablecoin and LUNA crypto token crashed drastically. The Terra Blockchain Launched in 2018 by the Terraform Labs and founded by Co-founders Do Kwon and Daniel Shin, Terra was a cryptocurrency protocol used to provide access to stablecoins. Recently, Kwon set his official Twitter account private, raising further suspicion that the token price may not be appreciated. According to market capitalization, the Terra protocol initially rose to become one of the ten leading blockchains in the world. It provided two unique tokens; the TerraUSD UST stablecoin and the LUNA utility coin, used for governance and to facilitate payments in the network. Since its inception in 2018, the Terra blockchain had been performing very well until mid-May 2022, when the blockchain saw a massive sell-off of the LUNA. The token’s price dropped from around $120 to about $0.02 between 11th and 12th May. Related Reading | Bullish: Bitcoin Marks First Green Weekly Close After Two Months In The Red Some people believe that the collapse was due to institutional investors “short-selling” Bitcoin (BTC) for the UST sta...
