The cryptocurrency market is in the middle of a widespread crash, causing investors serious financial pain with no clear way out.
The most dramatic fall yet has been the collapse of the $30 billion Terra ecosystem: its token Luna, its algorithmic stablecoin TerraUSD (UST)—which is supposed to remain pegged 1:1 to the dollar—and associated lending protocol Anchor. The implosion has caused an unimaginable amount of pain for would-be investors and has exacerbated an ongoing sell-off across crypto markets more generally. UST is currently trading at $0.15, and Luna has fallen from over $100 in April to $0.0001 today, effectively “going to zero,” in crypto-speak. Luna’s most dramatic fall has happened in the last week, with the token falling 99.99 percent from its $80 price a week ago. The price of Anchor’s token also fell dramatically, from $2 to $0.09.
The founder of the South Korea-based firm behind Terra-Luna, Terraform Labs, is Do Kwon, a normally prodigiously loud Twitter poster who regularly dismissed critics as “poor” in replies and said in one interview that “95 percent [of coins] are going to die, but there's also entertainment in watching companies die too.” Now, he hasn’t posted on Twitter in days and seems to have requested emergency personal protection from police.