Hello friends,
How are you all. I hope everyone is well with the blessings of the great creator. Today I'm going to talk about one of the trending topics going on about cryptocurrency. We're looking into the price crash of the Luna coin. The famous LUNA coin has decreased by 99.75%. I hope you will like it. Let's start drawing without saying much.

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History Of Luna

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Terra LUNA started with its ICO in 2019 with an initial price of $0.9. Its vision was to create Defi and use cryptocurrency as a medium of global currency exchange. Using cryptocurrency as a medium of global exchange is something that every crypto enthusiast dreams of. So, Terra attracted lots of users shortly and reached 1 million users within 2020. As the popularity of the platform increased, the price of the coin kept on increasing. It reached $100 by 2022 more than 100x than the start

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The Price Crash

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So what happened that caused the price crash of this popular and trending token. To understand that, we have to understand the relation between Terra LUNA and UST. UST is a stable coin from Terra. For those who don't know what a Stable coin is. A stable coin is a coin whose price doesn't fluctuate and remains the same. UST is an algorithmic coin that, unlike USDC and Tether, uses Smart contact to work. Terra incentivizes burning UST for LUNA whenever the price drops to bring the UST price up. Whereas, Tether uses UST as the medium of exchange. But something happened this weekend that Tether never even dreamt of

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Reason of Price Crash

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Earlier this weekend 2 Billion UST was unstacked ( Removed from the platform) and hundreds of millions were immediately sold. This caused the price of UST to drop to $0.9. the users immediately started to burn $0.9 UST for $1 LUNA. But the max transfer limit was only 100 million. Thus the price kept decreasing and after reaching an all-time low of 30 cents, it only rebound to 44 cents far below $1. Terra who used UST for exchange began to lose trust and the price of LUNA collapsed.

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Conclusion

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By the time of writing this article, Binance has already removed LUNA from its platform. Things are not looking good for LUNA as of now. This collapse of LUNA has created a big gap in the crypto world and the fall of Luna may not be as simple as it seems. If you want to understand more about this fall of Luna and its impact on the crypto world

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Category	Crypto News
Location	Link
Artist	@rabiul365