Terra Price News

Terra investors around the world lost billions of dollars when the algorithmic-stablecoin project crashed but they recovered a small part of their bets when a new token was distributed as compensation. Investors in India aren’t as fortunate. Because the country’s tax system is punitive to crypto investing, TerraUSD and Luna token holders who got the new coin — known as Luna 2.0 — in a so-called airdrop face a double whammy. They could be taxed as much as 30% of the value of tokens received and they won’t be able to offset any gains in the new token against losses from the previous one, tax experts said. Under the new crypto tax regime, effective April 1, any income from the “transfer” of a “virtual digital asset” will be taxed at a flat rate of 30%. It does not explicitly mention how airdrops should be taxed, but Jay Sayta, a technology and gaming lawyer, and Manhar Garegrat, executive director of policy at crypto exchange CoinDCX, said the distributions can be seen as income and are subject to the tax.

Bitcoin, the largest crypto by market value, climbed 4.15 per cent to $29,972.89. The cryptocurrency had fallen to a low of $25,401.05 on Thursday, its lowest level since December 28, 2020. It is still down 17.87 per cent in the last seven sessions.

crypto market, with the top 20 names dropping as much as 35 per cent in the last 24 hours alone. The fall in smaller tokens is steeper and the pain more severe. The global market capitalization of all the crypto tokens has tumbled below $1.2 trillion, falling about 16 per cent in the last 24 hours and 65 per cent from its peak of $3.2 trillion at the end of 2021. The largest crypto token — Bitcoin — has dropped 13 per cent to test $26,500 levels, whereas its counter-peer Ethereum has lost over 28 per cent to breach the $1,750 mark. At the time of writing this report, both had witnessed a mild recovery.

Terra blockchain's native token LUNA, Indian exchanges delisted the beleaguered token from their platforms. LUNA has tanked to merely a few decimal cents from its peak of $118, wiping out 100 per cent wealth of the investors. Overall, the token has wiped out $40 billion from their pockets. In its support blog, WazirX said they are delisting the pairs of LUNA/USDT, LUNA/INR, LUNA/WRX. «We will enable Binance free transfer for users to withdraw their LUNA funds,» it added. USDT is Tether, a stablecoin, and WRX is WazirX's utility token.

It now has a market capitalisation close to $26 billion, more than that of Dogecoin, Shiba Inu, Avalanche, Polygon and Crypto.com Coin. It could overpower Polkadot, which has a market cap of nearly $29 billion. Terra has been one of the best performing cryptocurrencies in 2021. The digital token has rallied more than 15,000 per cent in the last one year. It hit an all-time high of $75.56 from less than half a dollar a year ago.