It is not difficult to find people on Twitter who claim to have lost hundreds to thousands of dollars by investing in LUNA, one of the most popular cryptocurrencies due to its market capitalization and large volume of transactions.
The drop has been painful to watch, even if you are not invested in the cryptocurrency. Its value on May 1 was $80 and then the general decline in cryptos affected it to such a degree that it reached $16 on May 9.
The 80% drop in value was just the beginning. Between May 10 and 11, it lost more than 90% and was worth only one dollar. A day later it has lost 99% of its value and, at the cut of making this text, each LUNA token is worth one and a half dollarsalthough its minimum became less than a cent.
The dramatic drop in value has caused waves. A few hours ago, the LUNA network was paralyzed to make an adjustment to the algorithm and avoid governance attacks. At par, Binance ad that will disable today, May 12, the possibility of making transactions with LUNA for the futures modality, with which traders they tend to leverage when placing their short or long positions.
As in any such dramatic fall, there are cases of users who have lost everything, to the point that the LUNA subreddit has been filled with suicidal messages, as pointed out from Genbeta a few hours ago. If in general the stock market and the crypto market usually involve feelings in the purchase decision, right now only panic rules.
TerraUST, the crypto sister of LUNA that operates on the same network but works as stablecoins also continues to suffer from falls. They are less pronounced than those of LUNA, but their impact is transcendental since they raise the question of how stable the stablecoins. In this case it is one whose value should be attached to the dollar at all times, but the parity was broken and hit 20 cents a few hours ago.
At the cut of this text, it has recovered to reach 40 cents, but this has not prevented the secretary of the treasury in the United States, Janet Yellen, from quickly calling for a regulation on stablecoins and warned about its existence and the reliability of the promise to stick to a fiat currency. Although there is a UST rescue plan, which will only be possible through a massive investment to recover the demand of the stablecoinsthere is much less clarity about what will happen in the case of LUNA and users who, in a matter of hours, have seen their investments dedicated to crypto lose by more than 99%.