After the UST de-peg, which occurred on May 9th, LUNA and UST prices continued to drop, hitting new all-time lows day after day. While several influencers are urging investors to purchase LUNA at such low prices, the truth is that investor confidence in the cryptocurrency is lost, and users need to cut their losses and move on. In addition, the Terra team and Do Kwon have been quiet this weekend, with no new updates or reassurance for investors the past two days.
LUNA & UST Are Officially Dead
There’s no point beating around the bush. After the unfortunate turn of events last week, along with the poor handling of the situation, investor confidence in the Terra Luna project is ruined forever.
Several influencers on TikTok, Twitter, and YouTube are urging investors and traders to purchase several hundred dollars worth of LUNA because the prices are extremely low. If the LUNA price rises, the return on investment could be substantial.
However, keep in mind that with the number of tokens that have been minted, even with the current price of $0.000258, LUNA’s market capitalization is still over $1.6 billion. That’s still way overpriced for a cryptocurrency whose stablecoin is over 80% below its pegged value.
If LUNA’s market capitalization falls to the $100 million range, one should consider buying the dip. However, until then, it’s still extremely risky to invest in LUNA.
In addition, the cryptocurrency community remains in the dark this weekend regarding any potential developments regarding LUNA and UST. The only update from official channels includes a scam warning from the Terra Luna team to watch out for accounts attempting to impersonate them.
All updates will be posted on this Twitter account (@terra_money). Any other Twitter accounts purporting to represent Terra are fake.
Users are advised to be on the lookout for scams.
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 15, 2022
With no significant updates over the weekend from either the Terra Luna team or Do Kwon himself, it comes as no surprise that LUNA and UST are both suffering in price and continue to dip lower.
The Post-mortem for Terra Luna Is Coming Next Week
On May 13th, Terra Luna published a tweet stating that a post-mortem will be posted ASAP regarding the events that transpired since May 9th.
A post-mortem on everything that transpired the past week is in progress. It will be published asap.
These are tremendously difficult times for everyone affected. The feelings are still raw. Please be safe.
The strength of the #LUNAtics has been amazing. More to come.
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 13, 2022
Many are still confused regarding the technical details that caused the downfall of LUNA and the de-pegging for UST, and hopefully, next week, the Terra Luna team will paint a clearer picture of the events that transpired.
To add insult to injury, Crypto.com reversed a significant amount of traders who took advantage of a price glitch for LUNA, where the cryptocurrency was trading at 30-40x above-market prices.
CEO of Crypto.com, Kris, took to Twitter to explain the situation:
There was a lot of customers who were buying at wrong prices and of course some also jumped onto the opportunity to exploit the glitch to the maximum.
We reversed ALL trades.
Some customers saved a ton of $ and are thanking us, some didn’t abuse the glitch and are bashing us.
— Kris | Crypto.com (@kris) May 13, 2022
It’s challenging to determine the legality of reversing traders on a cryptocurrency exchange due to their platform’s failure. This debacle will upset users who are affected by the glitch. In addition, if users withdraw their cryptocurrency from Crypto.com, it’s unclear how the exchange will reverse their trades.
One positive news for LUNA traders and investors is that validators for the chain stopped minting new coins. This means the LUNA supply has stopped growing and diluting the token price.
In addition, two significant exchanges opened up deposits, withdrawals, and trading for LUNA, including Binance and KuCoin, which at least enables the market to stay active and for investors/traders to consolidate their losses or open positions.
Unfortunately, due to the lack of updates this weekend, LUNA’s price is down an additional 37%, while UST is trading at $0.19.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency.
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