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Terra's UST & Luna 'stablecoins' crashed over 50% in the past day

Both the UST and Luna cryptocurrencies saw dramatic drops in value of over 50 percent.

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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.

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.

News Editor

Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Star Wars nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_

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