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Stablecoins luna and terraUSD add fuel t

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  • The bloodbath in cryptocurrencies continued Thursday when the price of two benchmark "stablecoins" sank below $1, adding fire to a rout that has seen the price of bitcoin fall to its lowest level in more than a year.  
  • Two of the most sturdy tokens in the cryptocurrency world fell below their benchmark this week and that fueled a digital currency selloff Thursday, leading to price drops in bitcoin, ether and solana. Bitcoin fell as low as $26,513 Thursday, down 8% from Wednesday. Ripple has fallen 19% to $0.38 and ether is down 14% to $1,981. Those declines began soon after the prices of terraUSD and luna dropped below $1.
  • TerraUSD and luna are known in crypto circles as stablecoins, which means their value is tied to a commodity or a currency. In this case, terra and luna have been pegged to the U.S. dollar, meaning every luna is supposed to be worth $1. Some investors have grown to depend on stablecoins like luna because it shields their money from the wild swings typical of many cryptocurrencies.
  • While there are many stablecoins, terra and luna are two of the biggest and most popular with investors, with market caps of $4.2 billion and $60 million, respectively. 
  • As more investors have exited risky crypto markets in recent weeks, luna and terraUSD fell to 99 cents on Monday and luna fell below a dollar Wednesday night. Both tokens continued to trade below $1 on Thursday. 
  • The selloffs Thursday have helped the crypto market lose almost $1 trillion in value over the past month, Forbes reported. It also means some investors who were once gung-ho on crypto have sold their holdings for a loss. 
  • "Confidence has been waning"
  • The retreat of luna and terraUSD signaled to investors that the broader crypto segment is at risk, said Edward Moya, senior market analyst at Oanda.
  • "Bitcoin has been a casualty of the broader market selloff of risky assets, but the latest crisis with stablecoins triggered the collapse of the $30,000 level, which was a key entry point for many institutional investors," Moya said in a research note to investors, adding that a stock market rebound could help cryptos. "Confidence has been waning in the cryptoverse, but it seems we are getting close to the end of the market sell-off." The crypto selloffs are impacting individual investors and crypto-focused companies alike. Coinbase lost half its value in the past week due, in part, to slumping crypto prices. The crypto exchange platform on Wednesday reported a $430 million net loss in the first quarter.

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  • The bloodbath in cryptocurrencies continued Thursday when the price of two benchmark "stablecoins" sank below $1, adding fire to a rout that has seen the price of bitcoin fall to its lowest level in more than a year.  
  • Two of the most sturdy tokens in the cryptocurrency world fell below their benchmark this week and that fueled a digital currency selloff Thursday, leading to price drops in bitcoin, ether and solana. Bitcoin fell as low as $26,513 Thursday, down 8% from Wednesday. Ripple has fallen 19% to $0.38 and ether is down 14% to $1,981. Those declines began soon after the prices of terraUSD and luna dropped below $1.
  • TerraUSD and luna are known in crypto circles as stablecoins, which means their value is tied to a commodity or a currency. In this case, terra and luna have been pegged to the U.S. dollar, meaning every luna is supposed to be worth $1. Some investors have grown to depend on stablecoins like luna because it shields their money from the wild swings typical of many cryptocurrencies.
  • While there are many stablecoins, terra and luna are two of the biggest and most popular with investors, with market caps of $4.2 billion and $60 million, respectively. 
  • As more investors have exited risky crypto markets in recent weeks, luna and terraUSD fell to 99 cents on Monday and luna fell below a dollar Wednesday night. Both tokens continued to trade below $1 on Thursday. 
  • The selloffs Thursday have helped the crypto market lose almost $1 trillion in value over the past month, Forbes reported. It also means some investors who were once gung-ho on crypto have sold their holdings for a loss. 
  • "Confidence has been waning"
  • The retreat of luna and terraUSD signaled to investors that the broader crypto segment is at risk, said Edward Moya, senior market analyst at Oanda.
  • "Bitcoin has been a casualty of the broader market selloff of risky assets, but the latest crisis with stablecoins triggered the collapse of the $30,000 level, which was a key entry point for many institutional investors," Moya said in a research note to investors, adding that a stock market rebound could help cryptos. "Confidence has been waning in the cryptoverse, but it seems we are getting close to the end of the market sell-off." The crypto selloffs are impacting individual investors and crypto-focused companies alike. Coinbase lost half its value in the past week due, in part, to slumping crypto prices. The crypto exchange platform on Wednesday reported a $430 million net loss in the first quarter.

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