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ICO Review- Terra Luna #cryptocurrency_terra _luna

Cryptocurrency is a type of decentralized digital money based on blockchain technology. Although you may be familiar with the two prominent cryptocurrencies, Bitcoin and Ethereum, there are more thousands of cryptocurrencies in circulation, and our site will be a crypto guide that will guide you about these cryptocurrencies and learn how to trade cryptocurrencies and know cryptocurrency news. By introducing you to what these currencies are and how you know, and then we will talk about the Terra Luna cryptocurrency.

ICO Review- Terra Luna #cryptocurrency_terra _luna

What is Cryptocurrency All About?

A cryptocurrency is a string of encrypted data that represents a monetary unit. It is monitored and managed by the blockchain, a peer-to-peer network that also serves as a secure record of transactions such as buying, selling and transferring. Cryptocurrencies, unlike physical money, are decentralized, which means they are not issued by governments or other financial organizations.

Cryptocurrencies are produced (and secured) through cryptographic methods that are maintained and confirmed through a process known as cryptocurrency mining, in which transactions are processed and validated through a network of computers or specialized devices such as special integrated circuits. The measure rewards miners who operate the network with bitcoin.

  • In an upcoming article, I will talk about cryptocurrencies in general and in detail so that I will give you a comprehensive crypto guide with all the information you need to know about cryptocurrency projects and learn to trade cryptocurrencies

Terra Luna ICO Overview - A Comprehensive Crypto Guide to Understanding the Project

  • what is terra luna cryptocurrency? (terra version 1)

Terra is represented by a blockchain network built with the Cosmos SDK, whose expertise was in creating stable coins with stable prices. To employ cryptocurrencies or cryptocurrencies with extra collateral as reserves, each Terra stable coin can be converted to the Network token, LUNA.

  • How does Terra Luna work? (luna blockchain)

The LUNA blockchain pegged its currency so the company created a stable coin parallel to its own, called UST, so that the value of LUNA in US dollars would be convertible at a 1:1 ratio with US tokens. If the floor tank costs, say, $0.98, the reviewers exchange 1 UST cryptocurrency for $1 and earn 2 cents. This mechanism increases the demand for underground tanks and reduces supply when burning underground tanks. The stable coin then returns to the peg.

When floor coffers are above $1, say at $1.02, arbitrageurs convert $1 LUNA to 1 UST and earn 2 cents. The supply of floor tanks increases, and the demand for floor tanks decreases, bringing the price back to the pegged state.

Apart from limiting the fluctuations of the stable coin, validators and commissioners sign up for LUNA to get the rewards. These two players play an essential role in maintaining network security and confirming transactions.

  • Luna coin fall

How the attacks on $UST and $Luna were organized and executed:

Initially, the attackers purchased approximately $1 billion USD. After that, 3 billion dollars were borrowed, approximately 75k, at prices between 40-38 thousand dollars. After the purchase, reports and tweets were published with the aim of questioning the ability of the Luna Foundation “LFG” to maintain their fixed currency in the event of a market decline.

Following the spread of these rumors, the attackers opened shorts on Bitcoin and carried out high and continuous selling, the market with the amounts they borrowed ~ 3Bn$. At one point and only 10 minutes after Luna had withdrawn some cash from Curve's liquidity pool in preparation for some attacks, the attackers pounced on them. The attackers emptied Curve's liquidity pool with ease - they only needed $350 million to do so.

After the pool was emptied, they sold the amount they had previously bought from $UST on the Binance platform ~ about 1 billion dollars, forming strong selling pressure on it..
- In fact, the link model between $Luna and $UST was designed and the $1 level was maintained only if there were $4 billion in liquidity in the Curve Basin, not $350 million!! People start to panic when they discover that $UST can no longer sustain the $1 level and Bitcoin is falling wildly too Luna Corporation will have to sell its BTC reserves to rebalance $UST. Luna Foundation 42 thousand bitcoins are in the market to maintain UST and the reserves have been completely emptied.

- Bitcoin price continued to decline due to panic, in addition to the sale of Luna reserves, UST also suffered from selling pressure from the attackers.

The system was paralyzed and fear spread among traders, which made some platforms stop trading UST below $0.70, led by Binance platform. The Luna Foundation understood what was happening and stopped selling from the rest of the basins such as the “AVAX” basin, leaving UST to recover its value from people buying it and not being able to sell it below $0.70. There are rumors of agreements already in place between market makers and platforms to stop the $UST debacle. All this would not have happened if the basins were properly filled with 4 billion dollars and not withdrawn and keep only 350 million dollars!. The timing of the attack 10 minutes after the draw was no coincidence.

Janet Yellen - US Treasury Secretary - appeared and reported what happened to $UST and that stable coins are constantly growing and ways must be found to regulate them!

The emergence of the cryptocurrency Terra Luna v 2.0

  • What is Terra LUNA 2.0?

When problems occur in digital currency projects, companies resort to searching for a radical change in the currency’s blockchain, and most of them choose a solid fork supported to avoid any new errors in the currency system. This allows network-related projects to retain some of their legacy data while making network-level optimizations. However, Do Kwon, the inventor and owner of the coin, has chosen a completely new blockchain system that is different from its predecessor. As the developers said, Terra 2.0 is a completely new project devoid of data from the previous original network.

Therefore, this new Terra blockchain will have the same name with its original cryptocurrency under the same LUNA ticker. Meanwhile, the previous project has been renamed Terra Classic and its codename has been changed to LUNC.

The new Terra 2.0 coin was distinguished by its disassociation from the underground reservoirs. Where the disengagement led to the bottom of the blockchain.

The new cryptocurrency LUNA 2.0 received support from major crypto exchanges, which removed the original cryptocurrency after the crash.

price luna on coinbase: (terra luna coinbase)