UST token fell 40% off its $1 peg as LUNA crashed 50%

The TerraUSD (UST) token crashed to lows of $0.61 on Monday as it massively de-pegged from the $1 peg. The move comes at the same time as the broader crypto market bled and a sharp move lower in stocks.

UST has since moved back up amid a raft of measures to reestablish the peg by the Luna Foundation Guard, the organization that currently oversees the UST treasury.

As the algorithmic token fell, the LFG deployed its $2.2 billion BTC reserves – a move likely to have helped stem the rot- with BTC price falling briefly below $30k and LUNA nosediving more than 50% to around $28.

UST is vulnerable as LUNA trades 50% down in 24 hours

Tim Frost, founder and CEO of Yield App says the crash points to the vulnerabilities facing decentralized stablecoins.

A brutal start to the week for the entire cryptocurrency market has brought one of its latest stars to its knees: UST. Just when we thought a decentralized, algorithmic stable coin had finally made the grade and proved all skeptics wrong, it slips 40% below its USD peg,” Frost said in a statement obtained by CoinJournal.

At the time of writing, UST is back to around $0.90 as BTC sees a slight recovery above $31.5k and Terra…

Read more at coinjournal.net

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