TerraUSD crashed dramatically. Despite warm summer temperatures, there is currently quite an ice age on the cryptocurrency market: the key currencies gave way noticeably, the DeFi sector was hit - and the alleged stable coin of the Terra network Luna (LUNA) apparently played a large part in this. The coin may also be known to those gamers who deal with the Metaverse.
Gamers who deal more intensively with the Metaverse may well have heard of the Terra network and “LUNA” or the stable coin TerraUSD. After all, the mobile game RoboHero has created an environment in which assets can be earned through a play-to-earn concept based on the Terra blockchain. Cryptocurrencies and the games industry have long since found points of contact.
RoboHero: Mech Fights on the Terra Blockchain
RoboHero was the first ever mobile game with a play-to-earn approach. So fans should be rewarded by playing, and of course you can also collect or trade NFT (non-fungible tokens). The promises sounded good: all it took to get started was a smartphone, the RoboHero app, and some LUNA currency. However, things are not looking good for the latter at the moment, and that's exactly what could make one or the other gamer sweat.
The cryptocurrency TerraUSD, originally designed as a price-stable coin, has crashed drastically. And experts blame the whole thing for the crash on the crypto market. Anyone who has invested in blockchain currencies needs strong nerves in view of the market situation. There is a risk of losses, at least if you currently want to convert your virtual currencies into real money. The crash of Terra dragged down bitcoin as the key currency. The dinosaur among the coins was temporarily listed below the psychologically important $30.000 mark. The level was last this low in July 2021.
However, TerraUSD (UST) has fared far worse. The stablecoin fell by over 70 percent in about a week – apparently triggering a market-wide sell-off. Reason for the crash of Terra (LUNA) is the loss of the peg to the dollar. Actually, that is exactly what should keep the coin stable. UST has recently decoupled itself from the US dollar and was therefore able to fluctuate in the first place. That shouldn't happen, because stablecoins are supposed to do exactly the opposite. A technological process around algorithms ensures stability, at least normally. The link to the US dollar could work because TerraUSD and LUNA could be exchanged for a fixed exchange rate at any time - it is a duo of "burning" and "minting" - coins burn and create. However, the balancing mechanism no longer worked recently - the price development shows this clearly, because the stablecoin actually fluctuates around one US dollar. At times, however, the value was 30 cents, but now it is at least just over 60 again. The foundation behind Terra had to sell Bitcoin in order to be able to cover TerraUSD - the crypto market gave way. This is particularly curious because the Terra network recently invested in Bitcoin on a large scale. The vicious circle is now turning, because in addition to pure trade considerations, the events also called the regulatory authorities into action.
The average gamer will probably have little to do with it, but anyone who has entered RoboHero and thus found a starting point with LUNA could have developed a taste for crypto trading.
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Last updated on 27.09.2022/XNUMX/XNUMX / Affiliate Links / Images from the Amazon Product Advertising API. * = Affiliate links. Images from Amazon PA API