Terra Luna Bounces Back During Weekend After Crash

Cryptocurrency TerraUSD surged to $0.08003 and its sister crypto coin Terra Luna price increased to $0.0001949 in the last 24 hours, as per Coinmarketbase, after seeing an almost 100 per cent crash earlier this month. TerraUSD price increased by 20 per cent while Terra (Luna) surged by around 18 per cent in the past 24 hours, as on Monday.

Terra Luna witnessed a 100 per cent surge over the weekend and is still up around 60 per cent on Monday, as per the data from CoinMarketCap.

Stablecoin TerraUSD and its sister coin Terra (Luna) witnessed a massive crash in price earlier this month resulting in a bloodbath in the cryptomarket. TerraUSD collapsed almost 100 per cent from its $1 value and it also pulled down Luna with it. Luna's fall started when TerraUSD lost its peg to the US dollar. As the two token prices are linked Luna's price also plummeted.  

The near wipe out of TerraUSD and Terra (Luna) coins also cost many investors millions of dollars. The assets of Binance, the world's largest cryptocurrency exchange by daily trading volumes, in Luna fell to just $2,200 from $1.6 billion.

Luna's market value dropped to about $840 million from over $20 billion before the TerraUSD crash.

According to blockchain analytics firm Elliptic, TerraUSD and Luna investors lost around $42 billion. The crash of these two coins also affected the price of almost all cryptocurrencies. The largest cryptocurrency, Bitcoin, lost around a quarter of its value between May 9 and May 12. 

TerraUSD gained popularity earlier this year after Luna Foundation Guard, a charity organisation affiliated to Terraform Labs, the creators of the crypto coin, pledged to collect $10 billion worth of Bitcoin to support its dollar peg. TerraUSD maintains its peg through an algorithm that moderates the crypto coin's supply and demand in a complex way linked to the use of its sister token Luna.

Do Kwon, a South Korean who graduated from Stanford University with a degree in computer science, is the creator of TerraUSD and its native token Luna. Kwon faced lawsuits in South Korea after the crash of TerraUSD and Terra (Luna). Five South Korean crypto investors filed criminal complaints against him and his Terraform co-founder Daniel Shin, alleging fraud and violations of financial regulations.