Reason behind Terra Luna Market Crash and Other Major Crypto Currencies ?

Terra Luna hits its all time low price and the coin is currently down to 97% of its all time high value. This is an indication of rug pull. In 24 hours the price of Terra Luna goes down from 118 USD to 0.017 USD which leads towards terra Luna crashing. The reason behind this crash is the Terra Luna ecosystem. This ecosystem is based on a stable coin called UST. Other stable coin like Tether USDT uses equal amount of assets. These assets are like bonds or gold etc to keep its value stable. But in the case of Luna UST , it is backed with the help of algorithm. This algorithm pegged other digital assets in order to maintain 1$ mark.

The UST is just like backing assets like gold and other metals in real world. The TerraUSD (UST) was a project of Basis cash which was launched in 2020 with the goal that the stable coin will maintain its 1 $ position. Terra Luna Crashing will start occur if this value decreses than 1 $.

In 2021 the Terra USD fails to obtain its 1 $ mark and in early 2021 the price drops 17 %. This price drop leads towards Terra Luna huge crash. It is natural phenomena that If the backing stable coin goes down then it will automatically leads towards terra Luna crashing.

Will Terra Luna ever Recover its position ?

On Terra Luna Crashing the CEO of Terraform Labs their is still hope as he tweeted on twiter that many companies are interested to invest in Terra Luna which will be helpful to regain its position to some extent. Terra Luna Crashing will be stopped and will bounce back in near future.

Is that right time to buy Terra Luna during Market Crash ?

Many analyzers predicts that this is the best opportunity to buy Terra Luna because Big companies are merging to save Terra Luna which will increase its current price upto 4x due to Terra Luna Crashing continuously . Many investers believes that by the end of 2022 the price of Terra Luna will be upto 1$ which is upto 100x by the current position.According to the CEO of Terraform Labs their is still hope as he tweeted on twiter that many companies are interested to invest in Terra Luna which will be helpful to regain its position to some extent. Terra Luna Crashing creates an opportunity for new investors.

Why Overall Crypto Market is Crashing ?

The major crypto currencies like Bitcoin , Binance Coin and Solana is also crashing now a days. The reason behind this crash is that inflation is increasing now a days. This leads towards the stocks and Crypto Market Crash. Banks are offering high interest rates which is more suitable for investors than crypto market. Crypto Market is highly volatile which leads towards the Terra Luna Crashing.