Terra Luna cryptocurrency collapses 98%, investors lose life savings

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New Delhi, May 12 | The dramatic crash of Terra (Luna), ranked among the top 10 most valuable cryptocurrencies, has wreaked havoc in the lives of investors who are feared they will become homeless after the crypto mayhem.

Within the last 24 hours, its market cap dropped from above $40 billion to just $500 million, fallen by more than 99 per cent and leaving investors nowhere to go.

Terra was once ranked among the top 10 most valuable cryptocurrencies.

It dropped below $1, having peaked close to $120 last month, reports Independent.

“I lost all my life savings. Had bought Luna at $85, not sure what to do,” wrote a Terra investor on Reddit community forum.

Another investor lost $15,000 after failing to sell it when it was trading above $100 last month.

“I got greedy hoping to get more money so I can at least afford a downpayment for a house for my family. I guess no house and savings then,” the user posted.

Another user on the Reddit forum posted that “I lost over $450,000, I cannot pay the bank,a while another said: “I will lose my home soon. I’ll become homeless.”

Crypto exchange Binance temporarily suspended withdrawals on Terra.

Do Kwon, who founded Terra creators Terraform Labs, tweeted: “I understand the last 72 hours have been extremely tough on all of you – know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this.”

Terra said that the “prevailing peg pressure on $UST from its current supply overhang is rendering severe dilution of $LUNA”.

Terra has adopted UST as a stablecoin which is linked to an underlying asset, such as gold or US dollar.

“The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads,” it tweeted.

It proposed to burn the remaining UST in the community pool.

“TFL will burn the remaining 371 million UST cross-chain on Ethereum. TFL just staked 240 million $LUNA to defend from network governance attacks,” it added.

Source: IANS

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Weekly Technical Share Market Outlook

Weekly Technical Share Market Outlook

The Indian market recovered sharply on the last trading day amid the weekend after a continuous fall. Market has managed to halt above 16000 Nifty levels after continuous losing streak. Index reacted violently, grasping Indian as well as global factors throughout the week. Simultaneously, Inflation is catching up and profit margins are taking a hit.

 

Sensex advanced 1532 points or 2.90 percent while Nifty gained 484 points or 3.07 percent in a week. Simultaneously, Bank nifty has overcome bear’s dominance ending the session with 3.49 percent gain. Sectorally,Nifty Metal saw the highest gains of 7.40 percent followed by the Realty and Auto added over 4% gain. On the flip side Nifty IT tumbled 2.82 percent on weekly basis. Midcap and Small Cap measures rising nearly 2 percent as well.

In Nifty stock, EICHERMOT gained 11.31% while TECHM lost 5.98% on a weekly basis. INDIA VIX closes at 23.10 suggests volatility driven market is going to remain intact. Coming to the OI Data, on the call side highest OI witnessed at 17000 Nifty followed by 16800 Nifty strike price while on the put side, the highest OI was at 16000 Nifty followed by 15800 Nifty strike price. Technically, Nifty has formed a Tweezer Bottom type pattern in the weekly chart suggesting a short term buying rally may drive the market until monthly expiry. On the daily chart, price has rebounded from the lower Bollinger band as well.

Momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from oversold zone. However, Index is still struggling to get the support of 50 Simple Moving Average in daily chart. Short term investors and traders are advised to work with option strategies to neutralize the volatility. Overall, Nifty is having support at 15700 mark while on the upside 16700 followed by 16500 may act as an immediate resistance. While Bank nifty has support around 32500 while resistance is placed at 36000 on weekly chart.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India

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