Terra (LUNA), the in-house token of Blockchain protocol Terra, is undergoing major changes that are causing intrigue and despair in equal measure.
Data released on May 13 confirms that overnight, the embattled cryptocurrency’s supply expanded for an eye-watering 6.9 trillion LUNA.
6,900,000,000,000 LUNA, almost zero value
Following a tumultuous week by which Terra tried to save LUNA and its failing U . s . States dollar stablecoin, TerraUSD (UST), everything has gone from bad to worse.
Despite huge sales of BTC and loans to support the marketplace, both tokens have ongoing to hemorrhage value.
During the time of writing, LUNA/USD traded in an almost imperceptible average of $.00005474 during the time of writin, according to data from CoinMarketCap.
Towards the dismay of individuals wishing to lengthy at formerly already lower levels, LUNA couldn’t stop its decline, and also the latest measures by Terra have the symptoms of exacerbated the problem.
Supply increases, which started in serious on May 8, required a turn for that nonsensical in recent days inside a move similar to hyperinflationary fiat currencies.
On May 11, 1.8 billion LUNA was minted and put into the present 764 million supply. In the event that weren’t enough, May 12 saw 185 billion more tokens appear.
Finally, on May 13, Terra minted 6.7 trillion LUNA — a rise of three,483% at the same time.
RIP pic.twitter.com/LXfx1ngu2A
— hodlonaut ⚡ (@hodlonaut) May 13, 2022
“There’s bitcoin, and there’s shitcoins,” popular commentator Hodlonaut, creator of Bitcoin cultural resource Citadel21, responded throughout the May 12 print.
Following the total LUNA supply hit 6.9 trillion, Hodlonaut came a line underneath the altcoin’s existence.
Worse than OneCoin?
As spectacular because the inflation is, LUNA’s collapse is drawing probably the most attention, as older market participants compare the occasions towards the demise of crypto Ponzi schemes for example BitConnect and OneCoin.
Related: Bitcoin cost sees ‘hell of the reversal candle’ as 168,000 BTC leaves exchanges
David Hoffman, co-founding father of crypto e-newsletter Bankless, organized the proportions of the LUNA implosion versus BitConnect having a comparative market cap chart.
“LUNA is really the greatest cluster i’ve seen in crypto,” popular trader MDXCrypto ongoing:
“worst than Bitconnect, worst than Onecoin, worst than Axie, worst than all of them.”
As Cointelegraph recently reported, Terra has promised to bring back the whole ecosystem, nevertheless shutting lower the LUNA blockchain completely hrs later.
“Even if LUNA and UST survive this episode, over time there has to be some genius protocol changes effected to boost market confidence the marketcap of LUNA will invariably exceed the UST float,” Arthur Hayes, former Chief executive officer of derivatives platform BitMEX, authored within the to begin a number of blogs on stablecoins, entitled “Luna Siblings, Corporation.” released May 13:
“I do not know how to achieve this.”
LUNA/USD, getting been pulled from major exchange Binance, traded at $.0077 on Bitfinex during the time of writing, based on data from Cointelegraph Markets Pro and TradingView.
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