The UST Collapse
The UST collapse, in which UST lost its peg, caused luna to plunge from 68$ to 34$, the downward trend seems to be continuing. UST dropped to ~0.7$ and recovered yesterday to about $0.93 to fall again to the jaw dropping value of 0.43$.
What Happened To Luna?
During the past 13 hours, the luna cryptocurrency has lost 83 percent of its value, a drop that has never been seen before in a project that has continuously been among the top ten currencies in terms of market capitalization.
Luna Is terra’s native blockchain token. And UST is terra’s stablecoin.
Do Kwon’s Plan For Recovery Didn’t Calm The Investors
Do Kwon, Terra’s Co-Creator, tweeted that the project was close to revealing a recovery plan for $UST and that the plan was coming closer, but according to the charts, it didn’t appear to be enough to keep the investors interested in the project.
The The Treasury Secretary mentioned Terra and UST as an example for needed regulations
Stablecoins, according to Treasury Secretary Janet Yellen, must be regulated by the end of current calendar year. Secretary Yellen said in a hearing on Tuesday that, although digital assets may “encourage innovation,” they may also “present hazards to the financial system,” according to the Federal Reserve.