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LUNA is currently witnessing a surge in value which might generate profits for its new investors
The cryptocurrency market is in quite a volatile place right now. Bitcoin and Ether have been at their lowest, whereas, Dogecoin and Terra are faring even worse. While this has been extremely painful for crypto investors, according to experts, this dive was not exactly unprecedented. Cryptocurrencies are extremely infamous for being volatile, and the current weak economic and financial ecosystem is also bringing down the cryptocurrency market, which is following in the footsteps of the global stock market. The collapse of the LUNA cryptocurrency and its sister stablecoinTerraUSD has led investors to leave the crypto market and choose other traditional and centralized forms of assets. Billions of dollars of crypto wealth have been lost, sending shockwaves throughout the world. But recently, after last week’s fall, it seems like Terra is regaining its value slowly and steadily, making the new investors who bought the dip, fortunate enough to gain profits.
The severe inflation prompted the Terraform Labs team to halt the Terra blockchain, but the damage had already been done due to the hyperinflation that caused LUNA’s supply of coins in circulation to increase from around 350 million to 6.5 trillion during the crash, which is almost 18,000 times more than its original price. Following this dive, the price of Terra LUNA declined further down since investors moved into panic selling, resulting in LUNA’s price dropping over 99% from its all-time high. Several other cryptocurrency exchanges have de-listed Terra, saving those investors who wished to buy LUNA tokens for their future investments.
What actually happened to Terra?
Terra was the most constant stable coin with the US$1 in this highly fluctuating cryptocurrency market. The Luna Founder, Do Kwon, was focused on offering seamless and instant payments and transfers of cryptocurrency transactions across the world with stability all the time. Since its fall, its Founder has initiated several programs to support the Terra ecosystem. But since Do Kwon started starring in the industry deadlines, there have been several controversies and allegations against him that are in turn harming the reputation of the crypto. Terra was known for providing stability and has suddenly vanished from the highly volatile cryptocurrency market.
Are investors who bought the dip, in a profitable position right now?
The recent boom in the value of the cryptocurrency is quite insignificant compared to the great fall it had. The token went from being the 8th biggest cryptocurrency in the market to being de-listed from crypto exchanges. Well, the new investors who have wilfully invested in crypto might be on the gaining side. But for them to be satisfied by their investment in such a volatile asset, Terra needs to brace itself for bigger developments and price surges, otherwise, it will surely disappear into oblivion.