Cryptocurrencies, including Bitcoin, have seen a dramatic drop over the past week. In the case of Luna and Terra they lost up to 98% of the value.
A crash in the cryptocurrency market is what happened last week, fueled by the dramatic fall of two “stablecoins” as they are moon and earthwhich had effects on other cryptocurrencies such as Bitcoin itself.
In fact, Terra, which was trading at 1:1 to the US dollar, lost up to 98% of its value, causing investors to lose huge amounts of money.
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According to the international media The Independent, these losses have caused investors to face the disappearance of their assets, properties and life savings.
Faced with this situation, and in a maneuver to stabilize that cryptocurrency, the Luna Foundation, which manages both digital assets, decided to sell more than 80,000 bitcoins, which add up to almost 100% of the reserves it had in that cryptoactive and are equivalent to about $2.7 billion. After this sale, their reserves have been reduced to only 313 bitcoins.
The intention was to raise funds to be able to give, again, the necessary parity to the Luna and Terra currency, so that its investors could recover what was lost.
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However, analysts consulted by The Independent maintain that this project is already finished, so the actions carried out by the Luna Foundation will not be enough to recover the value that the Luna cryptocurrency once had, when it was worth more than $120 in April. .
That massive sale of bitcoins could also have affected the market for that cryptocurrency as the value of Bitcoin has also fallen by more than 50% since it reached its all-time high in November 2021.