Terra’s UST and Luna are two coins that are self-defined as “stablecoins,” with hopes that they would sustain a consistent value in a market that’s often criticized as being overly volatile. Unfortunately, both coins are looking like anything but stable according to their recent shifts in value. This morning, both UST and Luna tanked in value, dropping well over the 50 percent mark.
It was in the early hours of May 11 that Terra’s UST and Luna coins saw sharp decreases in value, as monitored on CoinMarketCap. The bad news for both coins began just after midnight, with Luna going from a peak of $31.58 yesterday to as low as $0.85 at around 9 a.m. ET this morning. UST on the other hand was as high as $.91 yesterday evening before crashing to a value of $.30 at 3:40 a.m. ET.
Yesterday, Terra’s Do Kown (aka @stablekwon) tweeted about the coins, which had already been on a decline as early as May 9. They stated that they were “close to announcing a recovery plan for $UST” yesterday morning and urged holders of the coin to “hang tight.” As matters worsened, Do Kwon shared a multi-tweet thread this morning in which they apologized to members of the Terra community and offered a bit of explanation as to what’s been going on over the past few days.
1/ Dear Terra Community:— Do Kwon 🌕 (@stablekwon) May 11, 2022
As of now, both coins are still far below the value they held just days ago, although there was a slight climb in UST’s value over the past couple of hours. We’ll continue to monitor the coins and see if a rebound is in the cards in the near future.