The crypto market appeared in red that day. Unexpectedly, Terra Luna Coin fell 100% to 0% to $ 0.01 in the crypto market, much to the shock of its investors.
The main reason for this is said to be the arrival of USD coins which currently dominate the crypto market.
Already Tether USD, USD Coin, Accounting USD Coins hold the top 10 positions in the crypto market. May 5 saw the sharp fall of the Terra Crypto Coin with the arrival of the TerraUSD coin and the appreciation of the dollar.
So you can see how the Tera USD coin is different from the Tera Luna coin.
TerraUSD This algorithm is one of the staplecoins. It seeks to maintain the same value of the US dollar using a complex sawawing mechanism with a corresponding cryptocurrency called terra luna (or luna). Although 1 TerraUSD should always be worth exactly $ 1, the value of the Luna may change. Terra USD uses Luna as a counterweight to maintain its dollar backpack. So that great loss can be escaped.
All investors have turned their attention to Terra USD as its value will rise against the dollar.
The value of the Terra Luna fell from $ 118 on May 5 to $ 0.00027 on May 15. This is the first time such an event has taken place in the crypto market. But Do Kwon, who created it, says Terra Luna will be back soon.