Terra (LUNA) Is Down 99%: Will Crypto Survive?
The cryptocurrency crisis has gone from bad to worse as LUNA, the native token of the Terra (CRYPTO: LUNA) blockchain, lost over 99% of its value in less than a week. This stunning collapse has dragged down the entire market -- which is now down 41% year to date to $1.3 trillion. That said, these near-term challenges probably won't destroy the industry and may turn into a buying opportunity when volatility subsides.
Terra is a blockchain designed to facilitate stablecoins, which are cryptocurrencies pegged to real-world currencies like the U.S. dollar or the euro. It comprises two types of assets: Terra, its portfolio of stablecoins, and LUNA, the tradeable token designed to absorb the volatility of the stablecoins. Terra's stablecoins are not backed by real-world money. Instead, they rely on complex algorithms and arbitrage.
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Source Fool.com
