Terra (LUNA) Price Prediction 2025-2030: LUNA faces the music as Do Kwon…
Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.
As per a recent news report, the United States may have gained an advantage in a race with South Korea to extradite Terraform Labs CEO Kwon Do-hyung from Montenegro on fraud charges related to the $40 billion Terra (LUNA) cryptocurrency project’s collapse in May last year.
Read Price Prediction for Terra (LUNA) 2023-24
Terra Luna (LUNA) was trading at $1.28 at press time; its current market cap stands at $312 million. Its future remains bleak as per most market experts.
It has now been nearly ten months since the Terra Luna project experienced a catastrophic collapse in May 2022. Later, major crypto exchange FTX collapsed in November 2022 and recently, the crypto-friendly Silicon Valley Bank (SVB) also collapsed.
Stablecoins, such as UST, were created to protect investors from the extreme price volatility of popular cryptocurrencies, such as Bitcoin (BTC).
As fiat currency is pegged to reserves such as gold, a stablecoin is pegged to either a fiat currency (e.g. USD) or a supporting cryptocurrency. In this case, TerraUSD was pegged to Luna. But herein lies the conflict. A cryptocurrency isn’t equivalent to gold reserves. As LUNA prices got destabilized, it had an impact on UST prices too, and the entire stablecoin system collapsed in the second quarter of 2022.
The stablecoin project was aimed at complementing the price stability and wide adoption of fiat currencies with the decentralized model of cryptocurrency.
Even those who are only vaguely familiar with the cryptocurrency industry know of the apocalyptic collapse of LUNA and UST in May 2022. This
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