Terra’s LUNA Falls Below $1

The price of Terra’s LUNA token has fallen below the $1 mark. It reached a new daily low of $0.938 on the Bitfinex exchange at 12:39 p.m. UTC.

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One of the most popular cryptocurrencies shed $29.5 billion in market capitalization in days in what appears to be the biggest and fastest downfall of a major blockchain project to date. The token is down more than 99% from its record high of $119.18 that was recorded a little over a month ago.

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The UST stablecoin is currently trading at $0.34 after plunging as low as $0.30 earlier today. Many have already jokingly branded it a “Kwonzi” scheme.

In an attempt to right the ship, Terraform Labs founder Do Kwon supported minting some additional LUNA tokens in order to eventually restore the $1 peg. After hours of silence, his statement only exacerbated the selloff.

Kwon was allegedly trying to secure a bailout deal with some big-name investors, but it ended up falling apart. In the past, Terra had faced accusations of being a Ponzi scheme, but the controversial co-founder chose to wave them away.

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MakerDAO founder Rune Christensen, who called Terra’s UST “a solid Ponzi” in January, tweeted that he was sorry about all the people who got suckered into the project.

An all-out disaster

In the meantime, Bitcoin slumped below $30,000 for the second time this week, currently trading at $29,192 on the Bitstamp exchange.

Terra’s annihilation has spilled over into other major cryptocurrency projects. Avalanche’s AVAX is taking a severe beating, plunging by more than 40%. It is worth noting that the two blockchains started their “blossoming collaboration” in early April, with Luna Foundation Guard buying $100 million worth of AVAX tokens. Solana (SOL) and Polkadot (DOT) plunged more than 25%.

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