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Terra exchange rate collapsed by 86% over a day, the UST token price fell to $0.4

Terra exchange rate collapsed by 86% over a day, the UST token price fell to $0.4

Terra was down to $4.5, although back in April, it exceeded $119. The company plans to raise more than $1 billion to support the stablecoin UST rate.

According to The Block, the cryptocurrency collapse started on May 8, when the TerraUSD (UST) algorithmic stablecoin temporarily lost its peg to the U.S. dollar. That happened after a user sold nearly $300 million worth of UST at once. At the moment, the stablecoin price has dropped to $0.4. 

By May 11, the Terra token had collapsed 86% in one day, falling to its lowest point of $4.5 since July 2021. Meanwhile, Altcoin set an all-time high of $119.5 last month. Since then, its price has fallen by 95%.

LUNA token is used to stabilize the UST price, so their rates are closely correlated. To solve the problem, Luna Foundation Guard plans to raise more than $1 billion from major crypto investors in order to support UST. Investors are invited to buy LUNA tokens at 50% off.

It's matters: Hoping for the best, prepared for the worst: why the crypto industry crisis is inevitable and what the Dot-com bubble has to do with it

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