May saw the tragedy of the collapse of the Terra (LUNA) and TerraUSD (UST) cryptocurrencies, prompting investors to be more cautious as the movement of the crypto market is ready to fluctuate since the announcement of the interest rate hike.
However, last night LUNA and UST were seen making a ‘u-turn’ with a sharp jump over the weekend.
What has happened?
Last week, Terra CEO - Do Kwon proposed a hard fork for the network ecosystem.
The proposal received objections by a majority who supported a second turnaround plan namely the establishment of a new Terra network and LUNA coins.
The increase in the price of LUNA is also linked to the difficulty of investors to shorting as most of the largest crypto exchanges still stop margin trading and have not reactivated.
One more thing, Kwon has shared the LUNA burning address after some communities offered to burn a large number of their holdings.
give us a burn luna adress we will burn it for you
- Roncin Antoine (@AntoineRoncin) May 21, 2022
For now, LUNA is very unstable because last week there was also pumping to record an increase of 3000% but the price of LUNA is getting worse.
Investors see the currently cheap LUNA price as an opportunity to buy and sell it when it is expensive.
As for the current situation of LUNA, it is too critical despite the pumping and burning of coins.
Even more so when the South Korean administration urged Terra Labs to settle tax arrears totaling $ 87 million (~ RM382.15 million), making sentiment increasingly murky.
Not sure to what extent this is legitimate but Kwon told that their side is not ‘indebted’ to South Korea.
Will LUNA and UST still have a chance to reclaim their previous glory?
As the writing LUNA traded at $ 0.0002027, it jumped 68% in 24 hours and UST was up 18%, trading at $ 0.06807
