Do Kwon has urged holders of LUNA to “stay strong,” as the price moves ever closer to zero. Following the UST stablecoin losing parity with USD, prices have plunged, falling to a new low this morning.
LUNA, UST Tumble Toward Zero
As of writing, LUNA/USD is trading at $5.45, which is marginally higher than its earlier low of $4.21.
To put things in perspective, prices are down nearly 90% from yesterday’s peak of $34.28, and only seven days removed from it trading at a high of $88.40.
Following a brief rally in the aftermath of it losing dollar parity, UST also moved towards zero, hitting a bottom of $0.2998 earlier today.
This came less than 24 hours after it was trading at $0.9486, however markets panicked at a lack of communication from LUNA founder Do Kwon, who was said to be working on a “recovery plan.”
Although some are still confident in the premise of algorithmic stablecoins, it is yet to be seen if UST will survive long enough to be a part of any future developments.
Kwon finally provided a more substantial update to the Terra community just recently, noting:
I understand the last 72 hours have been extremely tough on all of you – know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this.
The LUNA founder said of UST that “Before anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before UST can start to repeg.” Kwon then provided some technical prospects for decreasing “the supply overhang of UST.”
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