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The Terra (LUNA) price has fallen to an all-time low below $1, despite founder Do Kwon’s proposal to fix the UST peg.
The token slumped 98% in the past 24 hours, with losses showing no signs of slowing. LUNA’s price crash saw it tumble from the top-10 cryptos to the 43rd place.
The proposal from Do Kwon came after rescue measures from LUNA Foundation Guard (LFG), which oversees the UST stablecoin, appeared to have largely failed. The LFG had attempted to raise over $1 billion from investors.
Terra (LUNA) Prices Fail to Hold Above $5
LUNA spot prices on Binance have hit a minimum of $0.83. Meanwhile, the LUNA perpetual contract rate was in negative territory, while the 24-hour transaction volume reached $25 billion. Anchor Protocol, Terra’s biggest DeFi protocol, saw its total value locked sink nearly 90% in the past week, now standing at around $2 billion.
Some reports suggested LFG’s proposal to raise more than $1 billion in capital from Jump Crypto, Celsius, Jane Street, and Almeda has failed. The LFG aimed to raise capital to balance the Terra and UST relation. LUNA was to be purchased at a 50% discount, which would have been in a one-year lockup period.
Meanwhile, exchanges in South Korea such as Upbit and Bithumb have released investment warning notices due to the large price fluctuations of LUNA.
After the funding failed, Do Kwon said in a tweet that the only way is to absorb the stablecoin supply that wants to exit before UST can start to repeg.
“We endorse the community proposal 1164 to Increase basepool from 50M to 100M SDR*) Decrease PoolRecoveryBlock from 36 to 18 This will increase minting capacity from $293M to ~$1200M.”
The Terra (LUNA) price could possibly dive lower as the proposals from Do Kwon and the LFG have failed to support the Terra economy and UST’s peg with the US dollar.
Bitcoin (BTC) Price Remains Over $30,000
While the LFG losses aim to support UST stability with bitcoins during higher volatility, the Bitcoin (BTC) price continues to move higher in the past two days.
At the time of writing, Bitcoin is trading at $31,863, up nearly 2% in the last 24 hours. Whereas, the UST price is $0.49, down 45% in the last 24 hours.
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