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8 People Suicide Due to Crypto Luna Drops

Navigasi - Terra network stablecoin LUNA Coin dominates the trending topic on the CoinMarketCap site as the coin with the biggest decline in recent days. How could it not be, LUNA, which had touched the all-time high price (ATH) on April 5, 2022 by reaching a price of US$ 119.18 or around Rp. 1.7 million, is now one month later on Thursday, May 12, 2022 at 16.40. WIB, the price has plunged below US$ 1 which is US$ 0.09 or equivalent to only Rp. 1,314.69 per coin.

8 People Suicide Due to Crypto Luna Drops
8 People Suicide Due to Crypto Luna Drops

With LUNA's very deep correction, the cryptocurrency has now dropped to 95th on CoinMarketCap, previously in the top 10. In fact, according to the Cryptocraziac account, eight people have been confirmed to have committed suicide due to the “LUNA” accident. "Stay strong and reach out to those who are struggling right now," the account wrote.

Indeed, the current state of the market raises concerns about crypto assets. Some things to worry about are the potential for rising inflation, rising interest rates, the possibility of a recession, and several other factors.

As is well known, crypto stablecoin TerraUSD (UST) and its backing coin, LUNA, are reaping a massive sell-off. The price of the UST crypto skyrocketed and seemed to be free from the US Dollar which made it only under US $ 1. As a result of the decline in its price, the value of its market capitalization also fell.

UST's crypto capitalization has far surpassed LUNA. At the time of writing, UST's market capitalization stands at US$ 7.70 billion at a price of US$ 0.79, while LUNA's market price plunges to US$ 0.09. This led to a massive liquidation that reduced its market capitalization to only US$ 334.47 million.

If LUNA's crypto capitalization is lower than UST's, then there is a possibility that the funds for the Terra project will not sufficiently support the value of its algorithmic stablecoin. In fact, really not strong enough to hold the stake.

Luna Foundation Guard (LFG) as the party responsible for ensuring UST remains afloat, admitted that they have made efforts to overcome this situation in order to return the stablecoin to US $ 1. Their strategy in acquiring bitcoin to guarantee UST does not seem to have had a positive impact.

In his tweet on Twitter, Wednesday (11/5/2022) LUNA founder Do Kwon said that he understood that the last 72 hours were very difficult for Luna investors. "Know that I am determined to work with all of you to overcome this crisis and we will build a way out of this," he said.

Do Kwon and Terra quickly gained a lot of fans. Including one from crypto billionaire and Galaxy Digital boss, Michael Novogratz. "I'm probably the only man in the world who has a bitcoin tattoo and a Luna tattoo," he said at the Bitcoin 2022 conference in Miami April 6, referring to the wolf howling at the moon on his left arm.