Copy-paste | The price of the LUNA cryptocurrency today fell by more than 90% against the backdrop of the drawdown of the stablecoin UST

On Wednesday, May 11, the algorithmic stablecoin of the Terra ecosystem - TerraUSD (UST) - continued to lose its peg toUS dollar (the most important characteristic for every stablecoin). The LUNA cryptocurrency used to issue it collapsed by more than 90%

LUNA became the first coin in history to be included inranking of the top 10 cryptocurrencies, and then depreciated by 95%. Investors are actively withdrawing funds from this utility token of the Terra blockchain due to the collapse of the underlying ecosystem model.

Terra's goal was to create a bridge betweentraditional finance and cryptocurrencies. To do this, the project has launched several stablecoins, including USD-pegged UST. The algorithm of interaction between UST and LUNA, the internal coin of the system with a floating rate, is responsible for the correspondence of the rate 1: 1. Because of this, UST is called an algorithmic, or decentralized, stablecoin.

The Anchor protocol operating on the blockchain guaranteed a return of 20% per annum for UST staking.

The price of the LUNA cryptocurrency today fell by more than 90% against the backdrop of the drawdown of the stablecoin UST