Luna crash sinks wealth of Indian crypto investors

economictimes.indiatimes.com:

crypto investors took another dive triggered by the crash of a popular stable coin, TerraUSD, or UST, in the last 48 hours in a market already roiled by rising interest rates, inflation, and Russia’s war on Ukraine. The algorithmic stable coin is supposed to maintain a one-to-one peg against the US dollar but slumped nearly to $.26 to the dollar on Wednesday night after the complex mechanisms that were supposed to hold the dollar peg failed leading to the UST crash. And as a result Luna, Terra’s sister token which powers the Terra blockchain, dropped below $0.30 on Thursday from $80 in a matter of 3 days.

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A good number of Indian crypto investors had Luna in their portfolio, and the crash wiped off their holdings in a matter of hours. «It was a good project and had given good returns in the last one year. „Those investors who bought the token at $60-70-80 a few months back have seen their investment evaporate in a day,“ said Vishal Gupta, a Noida-based crypto investor. The Luna crash then added fuel to an already nervous market, pulling down all major digital assets into a freefall. Bitcoin, the most popular cryptocurrency, briefly touched $26,000, its lowest level since December 2020, on Thursday as the cryptocurrency selloff accelerated. At 5 pm, Thursday, Bitcoin was trading at $ 28,498 (-10.60% in the last 24 hours) on Coinmarketcap. The pain continued in the smaller cryptos as well. Ethereum was down 18.88 per cent ($1966.03), Binance coin dipped 12.73 % ($271.54), Solana fell 30.8 %