Terra is Down 99%, and So are You! Chances of Bounceback are Less

Terra has certainly dived down and it has taken down its investors along with it

The price of Terra LUNA cryptocurrency fell by almost 99% overnight, erasing almost 95% of the investors' wealth. Terra, which was one of the largest cryptocurrencies in the market dropped below US$1, having peaked around US$120. It is mainly a snowball effect as the TerraUSD got de-pegged twice within a period of 48 hours. As UST lost its value, it brought down the LUNA token along with it. Terra's current market conditions have literally shocked investors. Its volatility is scaring away more potential investors who previously thought that the crypto market would soon stabilize. But Terra's recent complications have left investors in turmoil, making it even more difficult to retain their tokens.

Terra investors have tweeted that most of them lost their savings and hoped that they had cashed out their profits when there was still time. But unfortunately, the volatility of the crypto market is quite uncertain. Nobody can actually predict beforehand the cryptocurrency movements. The fact that a stablecoin lost its dollar peg is scary, as these coins were supposed to be the safest investment option in the market.

TerraUSD is an algorithmic stablecoin, meaning computer codes work in the background to maintain its price. Technically, smart contracts burn or mint UST or LUNA to eventually influence the value of UST. As experts have earlier predicted that the dangers involved in this system are huge, quite rightfully, it finally did not hold up its value consistently. Terra was the 8th largest cryptocurrency in the market, but currently, at the time of writing this article, Terra ranks 139th, making it one of the most drastic and dramatic falls in cryptocurrency history.

In a nutshell, the crypto market is extremely unpredictable. Investors and crypto whales are now dumping their crypto tokens and are opting for more traditional and centralized assets.

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