Terra (LUNA) is down more than 95% in the past week. How exactly does this happen? And how does LUNA actually work? In this video we look at how the two coins of Terra work. On the one hand, LUNA is used for network management and for strike† And on the other hand, there is the UST stablecoin which should normally be equivalent to 1 US dollar. That is currently not the case. 1 UST is worth approximately 50 cents at the time of writing. And because of that, there is a lot of unrest at the moment.
Terra vs LUNA vs UST
In the end it all seems to be a matter of trust. Can Do Kwon, the founder of Terra, Luna and UST, ensure that the wildfire is extinguished, or will this project eventually go completely to 0? I’m afraid no one knows the exact answer to this. As a result, the current situation seems to be just gambling.
Keep in mind that this situation is extremely risky. If you want to start a position, keep in mind that this could literally go to 0. Always make your own decisions. Make sure you know what you’re doing. Don’t let FOMO guide you, which can quickly happen in these kinds of situations. Stay safe!
I myself dived into the world of crypto at the end of 2019 and have also delved more into equities from the beginning of 2020. I have now found my life mission: a financially healthy life for everyone. At my English- and Dutch I make videos about crypto and stocks under the name ‘Nesami’ on YouTube channels, using my FUPITA method: fundamental, financial and technical analysis. When it comes to crypto, I follow the latest developments in bitcoin, altcoins and NFTs. Are you curious how I can help you with investing in crypto and stocks? Then take a look at my websiteor start right away with it invest in yourself†
