Value Of World’s 4th Biggest Crypto Almost Wiped Off: How This Happened? Will Luna Rise Again?

Updated (May 15, 2022): Price of Terra Luna crypto is slowly rising again, but the unpredictability of the crypto market is shocking.

Earlier:

Some things are just too good to be true. Even though we don’t necessarily play by this adage, it is true sometimes in practical life.

A cryptocurrency by Terra Blockchain, Luna, which mere few weeks ago was one of the hottest coins in the game has now reduced to zero.

One of the 4th most valuable cryptocurrencies when it came to market valuation, is now nothing!

Luna : Reign To Ruin

The Reddit community where Luna owners gathered and talked has put the suicide prevention help number in the pinned post on the community page.

It is from the last 2 weeks that the fall started and now those whose own it, cannot sell it for their lives as the crypto is not worth a dime.

With Luna crashing, the TerraUSD which was supposed to be tagged with US Dollar at 1:1 rate, is now worth less than 20 cents. This shows that in real-world a cryptocurrency, irrespective of the idea behind it, has no tangible value and an institutional mechanism that can guarantee whatever value it holds.

Major crypto exchanges, including WazirX and CoinDCX, have delisted Luna. In a note, WazirX said that “We will enable Binance free transfer for users to withdraw their Luna funds”.

Major Cryptocurrencies See Their Values Plummeting

Luna and TerraUSD aren’t the only cryptocurrencies whose value took a nosedive last week. Though not reduced to zero like Luna, most of cryptocurrencies are in a free fall.

Bitcoin, which was once selling above $50,000, is now at a price of around $28,000 and falling whereas Ethereum in last 10 days has seen its value plummet by some 20 odd per cents.

As many are trying to sell whatever crypto coins they hold, as per the experts around $800 billion of wealth has been wiped from the cryptocurrency market.

There is sheer commotion and unrest in the cryptocurrency communities on Reddit and all around the world.

While many want to get out of the crypto scene, some are still believers in “HODL.”

A Reddit user with ID “asdrubalivan” wrote on Friday on the main cryptocurrency discussion board said that “As a person living in a sanctioned country like Venezuela, crypto is my only investment option right now. It’s very scary now with the LUNA crash. I wish I could diversify it and invest in ETFs and stuff like that”.

Another user who goes by the name “KalSereousz” said “Imagine you went on holiday for a week, totally switched off from crypto, then came back to see a top 10 token in the toilet”. Adds another user, “I’ve never seen wealth destruction happen that quick. For any asset class or any time.”