Terra (LUNA) Falls Over 85% In Weeks, Losses Position In Top 25

Terra (Luna) is feeling some severe heat.

Back in April, Terra Luna’s price was soaring at an impressive $119. Since then, a lot has changed, and the Terra Luna community isn’t happy anymore. It’s worth noting that Terra Luna is related to the Terra UST, which was a crypto stable coin pegged on the USD – until things went south.

A look at Terra Luna’s current price standings is sickening, especially compared to its April 5th ATH of $119. Today, the same coin is trading at just $9.25, recording an over 85% drop within a month. Granted, the crypto market can be very dynamic, but a robust external factor can have only caused a market correction of Luna’s magnitude within that time frame.

Santiment, a crypto-centric on-chain, and social metrics entity, put this into perspective.

“Terra‘s price has now fallen -88% in 5 weeks after its $119 #AllTimeHigh was hit back on April 5th. Now down to $15.50, the $LUNA foundation has sold its entire holding of $BTC after $UST lost its peg. The sentiment is at an #AllTimeLow as a result.”

? #Terra's price has now fallen -88% in 5 weeks after its $119 #AllTimeHigh was hit back on April 5th. Now down to $15.50, the $LUNA foundation has sold its entire holding of $BTC after $UST lost its peg. Sentiment is at an #AllTimeLow as a result. ?https://t.co/ZaQKlVQ8rF pic.twitter.com/V6qYYxgNm6

— Santiment (@santimentfeed) May 11, 2022

Luna Foundation Sold Its Entire Holdings

According to Wu Blockchain: ‘The Bitcoin address of the Luna Foundation Guard (LFG) transferred 28,205.5 Bitcoins to Binance yesterday, and the address balance is 0 now. The address transferred 42,530 bitcoins out earlier and then transferred 28,205 bitcoins in.’

A Possible Hack

Apparently, the cause of all of Terra Luna’s and UST’s troubles stemmed from an audacious hack that saw the offender make away with over $800 million. As a result, the Luna foundation was forced to liquidate its entire BTC stash to keep the price of UST stable. However, that seemed to worsen as the hacker drained even more funds from the ecosystem. Word has it that the attacker sold their loot on Binance and Curve. It’s still unclear whether there are mechanisms to mitigate such incidents on crypto exchanges.

How to make a >800 million dollars in crypto attacking the once 3rd largest stablecoin, Soros style:

Everyone is talking about the $UST attack right now, including Janet Yellen. But no one is talking about how much money the attacker made (or how brilliant it was). Lets dig in? pic.twitter.com/nGVfqjpVJb

— Onchain Wizard (@OnChainWizard) May 10, 2022

Investor Sentiment In Critical Form

A few days ago, Terra Luna’s price had dropped by over 80% compared to the April ATH. The coin has fallen even further to more than 90% loss as it stands now. This isn’t something that attracts investors. While many shrewd investors would gladly scoop up more coins to fill their bags during a bear market, Terra’s case is entirely different from the larger market developments. This wasn’t an act of market forces. The price fall resulted from an elaborate hack executed over several weeks.

Besides the price crash, Terra Luna lost its glory as one of the top 20 best cryptos in the charts. The coin is currently at position 30 on CoinMarketCap.

As such, the crypto market sentiment is currently at an all-time low. This was made worse by the decision of the Luna foundation to de-peg the UST from the US Dollar, leaving the stable coin in a state of panic and trading at way lower than expected. For one, stable coins are expected to trade at a dollar cost. Today, TerraUSD (UST) is trading at $0.72, marking a 19% drop.