Tuesday, March 28, 2023
[email protected]
 Fintech Zoom
  • MARKETS
    • Trading
    • Stock Futures
    • Exchange Traded Fund (ETF)
    • Best Stocks To Buy Now
    • Penny Stocks
    • Forex Market
    • Bonds & Rates
    • Stock Market Guides
    • Commodities
      • Brent Crude Oil Price
      • WTI Crude Oil Price
    • Breaking Stock Market News
    • Reviews in Stock Market
    • Asian Markets
    • European Markets
    • US Markets
  • WORLD INDICES
    • DAX PERFORMANCE-INDEX
    • Russel 2000 (RUT)
    • STOXX Europe 600 (SXXP)
    • Euro Stoxx 50
    • CAC 40 Index (FCHI)
    • FTSE 100 Index
    • Nikkei 225 Index
    • HSI – Hang Seng Index
    • NSE Nifty 50 Index
    • NASDAQ Composite Index
    • Dow Jones (INDEXDJX: .DJI)
    • S&P 500 Index
    • ASX – Australian
    • Shanghai Index (SSE)
  • BUSINESS
  • CRYPTO
    • Metaverse
    • Tokens
    • Crypto Reviews
    • NFT : Non-Fungible Tokens
    • Stablecoins
    • Blockchain
    • Ethereum
    • Buy Bitcoin
    • Best Crypto
    • Bitcoin
    • Altcoins
  • MONEY
    • Insurance
    • Taxes
    • Mortgages
    • Loans
    • Personal Finances
    • Credit Cards
    • Interest Rates
  • BANKING
    • Banks Near Me
    • Payments
    • ATM Near me
    • Best Banks
    • Banks Guides
    • Transfer Money Online
    • Mobile Banking
    • Digital Bank
  • TECH
    • Social Media
    • Login
    • Error Pages
    • Is It Down?
    • Download
    • Settings
  • LUXURY
    • Luxury Food & Drink
    • Luxury Cars
    • Luxury Style
    • Luxury Motors
    • Luxury Travel
    • Luxury Tech
  • LIFESTYLE
    • Travel
    • Real Estate
    • Entertainment
    • Health
    • Cars
    • Famous People
    • Near Me
    • Life
    • Weather Tomorrow
  • ABOUT US
    • Why Fintech Zoom?
    • What is FintechZoom?
    • Advertise with Us
    • Careers in FintechZoom
    • Fintech Zoom Logo
    • FintechZoom PRO
No Result
View All Result
  • MARKETS
    • Trading
    • Stock Futures
    • Exchange Traded Fund (ETF)
    • Best Stocks To Buy Now
    • Penny Stocks
    • Forex Market
    • Bonds & Rates
    • Stock Market Guides
    • Commodities
      • Brent Crude Oil Price
      • WTI Crude Oil Price
    • Breaking Stock Market News
    • Reviews in Stock Market
    • Asian Markets
    • European Markets
    • US Markets
  • WORLD INDICES
    • DAX PERFORMANCE-INDEX
    • Russel 2000 (RUT)
    • STOXX Europe 600 (SXXP)
    • Euro Stoxx 50
    • CAC 40 Index (FCHI)
    • FTSE 100 Index
    • Nikkei 225 Index
    • HSI – Hang Seng Index
    • NSE Nifty 50 Index
    • NASDAQ Composite Index
    • Dow Jones (INDEXDJX: .DJI)
    • S&P 500 Index
    • ASX – Australian
    • Shanghai Index (SSE)
  • BUSINESS
  • CRYPTO
    • Metaverse
    • Tokens
    • Crypto Reviews
    • NFT : Non-Fungible Tokens
    • Stablecoins
    • Blockchain
    • Ethereum
    • Buy Bitcoin
    • Best Crypto
    • Bitcoin
    • Altcoins
  • MONEY
    • Insurance
    • Taxes
    • Mortgages
    • Loans
    • Personal Finances
    • Credit Cards
    • Interest Rates
  • BANKING
    • Banks Near Me
    • Payments
    • ATM Near me
    • Best Banks
    • Banks Guides
    • Transfer Money Online
    • Mobile Banking
    • Digital Bank
  • TECH
    • Social Media
    • Login
    • Error Pages
    • Is It Down?
    • Download
    • Settings
  • LUXURY
    • Luxury Food & Drink
    • Luxury Cars
    • Luxury Style
    • Luxury Motors
    • Luxury Travel
    • Luxury Tech
  • LIFESTYLE
    • Travel
    • Real Estate
    • Entertainment
    • Health
    • Cars
    • Famous People
    • Near Me
    • Life
    • Weather Tomorrow
  • ABOUT US
    • Why Fintech Zoom?
    • What is FintechZoom?
    • Advertise with Us
    • Careers in FintechZoom
    • Fintech Zoom Logo
    • FintechZoom PRO
No Result
View All Result
FintechZoom
No Result
View All Result

Going ‘To Absolutely Zero’ – Panic Is Sweeping Crypto Markets – What’s Occurring to UST?

Yuuma Nakamura by Yuuma Nakamura
May 11, 2022
in Cryptocurrency News, Cryptocurrency Prices Today, Special, Stablecoins
0

Home » Going ‘To Absolutely Zero’ – Panic Is Sweeping Crypto Markets – What’s Occurring to UST?

  • Controversial stablecoin UST– which is suggested to be secured to the us dollar– drops below 40 cents
  • Striking The Rate Of Bitcoin, Ethereum, BNB, XRP, Cardano, Solana, Terra’s Luna As well as Avalanche
  • UST, a so-called stablecoin that’s indicated to preserve a $1 secure, was trading at just 35 cents Wednesday.
  • Related token luna dived greater than 80% to $5.
  • Various other cryptocurrencies tumbled together with them, with bitcoin sinking 5% and ether down 4%.
  • TerraUSD Stablecoin Plunges as Crypto Market Waits For Rescue
  • Stablecoin smashes additionally from its intended dollar peg
  • Larger crypto markets standing up with Bitcoin little bit altered

The bitcoin rate has dipped back towards $30,000 per bitcoin after diving under the closely-watched level previously today. Ethereum and also its major opponents BNB -5.3%, solana, cardano as well as avalanche have additionally collapsed. Solana SOL -8.6% as well as avalanche are leading the major market reduced with a 10% and also 20% decline respectively.

Terra’s luna, a cryptocurrency developed to sustain the UST one-to-one fix with the U.S. us dollar, has actually lost practically 90% of its worth over the recently as traders offload the cryptocurrency.

Both major symbols from embattled crypto task Terra are now in freefall.

UST, a supposed stablecoin that’s suggested to maintain a $1 fix, dove more than 60% Wednesday from 1 day earlier. It was trading at just 35 cents at 4 a.m. ET, according to CoinGecko data.

RelatedPosts on FintechZoom

What are Stablecoins and How Can They Benefit You?

What Crypto to Buy Now: The Ultimate Guide to Investing in Cryptocurrency

Bitcoin (BTC) is up 0.26% today and Ethereum (ETH) is down 0.56%

Understanding Market Cap Coin: An Essential Guide

What is Defi, and Why it Might Save Us from the Next Financial Crisis

Bitcoin dive to 15,736 USD after Binance go back From Potential Acquisition of FTX

Related token luna dived greater than 80% to $5.

Various other cryptocurrencies toppled alongside them, with bitcoin sinking 5% to $30,321 as well as ether dropping 4% to $2,286.

Bitcoin Support level $30,000 – BTC will fall ?

Stablecoins are akin to checking account for the crypto economy, providing a sound store of value to avoid the kind of volatility cryptocurrencies like bitcoin have ended up being well-known for– in theory, at the very least.

UST, the globe’s third-biggest stablecoin, makes use of a complicated system of producing and also burning tokens to readjust supply as well as support rates. Its price has actually crumbled under the stress of a sell-off in cryptocurrencies recently, leading to additional panic in the market.

Do Kwon, the coin’s designer, has actually generated billions of us dollars’ worth of bitcoin through his Luna Structure Guard fund to sustain UST in times of crisis. The fear now is that Luna Foundation Guard discards those bitcoins onto the market, causing an even bigger sell-off.

Bitcoin quickly dropped below $30,000 Tuesday, its lowest level given that July 2021. The globe’s biggest electronic coin is now hovering somewhat over that degree. It’s dropped about 56% since setting an all-time high of nearly $69,000 in November.

David Moreno Darocas, a research study analyst at CryptoCompare, stated the scenario highlights the “delicacy” of mathematical stablecoins like UST.

“UST has grown to be both an important and questionable item of the crypto environment,” he stated.

The sensation is still reasonably brand-new. Yet UST has expanded to come to be a major gamer in the crypto economic climate, with a flowing supply of nearly 17 billion tokens.

Investors are now carefully looking for exactly how Luna Foundation Guard responds to prop up its ailing stablecoin. Kwon said Tuesday he was “near introducing a recovery plan” for UST. “Hang tight,” he tweeted.

“Stablecoins are in my opinion the entry for non crypto natives (late adopters) into the crypto space because of their nature to be a good way to beat volatile. I think this will have a ripple effect against other stable coins, or at least push towards the adoption of 1:1 backers like USDC. The stablecoin market will react to this player leaving the space, and now more trusted and asset backed coins and tokens can enter.”

Mark Basa, director at HOKK Finance

“The UST depeg is definitely sending shockwaves throughout the industry and has reduced the sentiment in the market for sure. However, there is a silver lining here. The dumping of $1b worth of Btc by Luna to try and stabilise the UST $1 peg has not sent Bitcoin tumbling down. Showing that even with an $18b catastrophe happening in the space there is still strong demand and resilience for Bitcoin. The price is holding up pretty well considering the circumstances and the broader market sell off.”

Saad Naja, CEO of MetaTag

“Substance is a critical element in any crypto project and the community expects turnaround plans when faced with challenges, which Do Kwon could not provide. Sadly, this also happened during a period of general price madness and instability, paired with negative feedback from the US Treasury. But it’s not only a timing issue, but one of general substance.”

Felix Honigwachs, CEO of Xchange Monster

Here is breakdown of the situation below:

– A large “stablecoin” called UST, which was designed to be pegged to the dollar, has failed and is currently trading at 50 cents.

– A related pure cryptocoin called Luna has also collapsed, going from $60 per coin two days ago to less than $1 today.

– This is one of the biggest collapses in crypto history, with over $50B in total value destroyed in a matter of days

– There are different approaches to designing a stablecoin, and UST’s was the most risky. Some leaders within the crypto industry warned it would fail. 

– This project had a charismatic and highly outspoken leader who had developed a cult following in recent days, even naming his newborn child Luna just a few weeks ago. But he went silent as his followers lost everything.

– He was backed by certain prominent people in the industry, including the CEO of a public crypto company, who got a large tattoo of Luna a few months ago. 

– Rumors of who attacked the project initially and what other dominos can fall abound

– There will be broad implications for crypto going forward, including a potential regulatory crackdown

Omid Malekan is a nine-year veteran of the crypto industry and professor at Columbia Business School
Yuuma Nakamura

Yuuma Nakamura

Yuuma Nakamura is a staff writer covering crypto, blockchain, finance and other technology for FintechZoom. Contact: [email protected]

Related Posts

Stablecoins | FintechZoom

What are Stablecoins and How Can They Benefit You?

March 2, 2023
Crypto coins | FintechZoom

What Crypto to Buy Now: The Ultimate Guide to Investing in Cryptocurrency

February 21, 2023

Bitcoin (BTC) is up 0.26% today and Ethereum (ETH) is down 0.56%

December 26, 2022

Understanding Market Cap Coin: An Essential Guide

December 9, 2022

What is Defi, and Why it Might Save Us from the Next Financial Crisis

November 26, 2022

Bitcoin dive to 15,736 USD after Binance go back From Potential Acquisition of FTX

November 10, 2022

Leading Stablecoin, Tether Replaces Commercial Paper Holdings With US Treasury Bills

November 2, 2022

Cryptocurrency Prices Today – Live Updates

October 14, 2022

Cryptocurrency Prices Today: Crypto Rise Up, BTC +1.47% and ETH +4.04%

October 13, 2022
Next Post
Cryptocurrency Prices Today

Top 8 Types of Financial Software to Build a Successful FinTech Startup

Stock Market chart on laptop and mobile

7 Investment Strategies for Beginner Investors

Her Majesty's Revenue and Customs (HMRC)

HMRC Reduces Its Overall Debt Balance, But New Debt Continues to Rise

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • About Us
  • Advertise
  • Careers
  • Terms and Conditions
Call us: + 1 917 9939840

© 2016-2023 FINTECH ZOOM - WORLD FINANCE

No Result
View All Result
  • MARKETS
    • Trading
    • Stock Futures
    • Exchange Traded Fund (ETF)
    • Best Stocks To Buy Now
    • Penny Stocks
    • Forex Market
    • Bonds & Rates
    • Stock Market Guides
    • Commodities
      • Brent Crude Oil Price
      • WTI Crude Oil Price
    • Breaking Stock Market News
    • Reviews in Stock Market
    • Asian Markets
    • European Markets
    • US Markets
  • WORLD INDICES
    • DAX PERFORMANCE-INDEX
    • Russel 2000 (RUT)
    • STOXX Europe 600 (SXXP)
    • Euro Stoxx 50
    • CAC 40 Index (FCHI)
    • FTSE 100 Index
    • Nikkei 225 Index
    • HSI – Hang Seng Index
    • NSE Nifty 50 Index
    • NASDAQ Composite Index
    • Dow Jones (INDEXDJX: .DJI)
    • S&P 500 Index
    • ASX – Australian
    • Shanghai Index (SSE)
  • BUSINESS
  • CRYPTO
    • Metaverse
    • Tokens
    • Crypto Reviews
    • NFT : Non-Fungible Tokens
    • Stablecoins
    • Blockchain
    • Ethereum
    • Buy Bitcoin
    • Best Crypto
    • Bitcoin
    • Altcoins
  • MONEY
    • Insurance
    • Taxes
    • Mortgages
    • Loans
    • Personal Finances
    • Credit Cards
    • Interest Rates
  • BANKING
    • Banks Near Me
    • Payments
    • ATM Near me
    • Best Banks
    • Banks Guides
    • Transfer Money Online
    • Mobile Banking
    • Digital Bank
  • TECH
    • Social Media
    • Login
    • Error Pages
    • Is It Down?
    • Download
    • Settings
  • LUXURY
    • Luxury Food & Drink
    • Luxury Cars
    • Luxury Style
    • Luxury Motors
    • Luxury Travel
    • Luxury Tech
  • LIFESTYLE
    • Travel
    • Real Estate
    • Entertainment
    • Health
    • Cars
    • Famous People
    • Near Me
    • Life
    • Weather Tomorrow
  • ABOUT US
    • Why Fintech Zoom?
    • What is FintechZoom?
    • Advertise with Us
    • Careers in FintechZoom
    • Fintech Zoom Logo
    • FintechZoom PRO

© 2016-2023 FINTECH ZOOM - WORLD FINANCE