Terra (LUNA V2)
The Terra (LUNA) crypto bottomed out in record time when a sudden drop in demand for the TerraUSD (UST) stablecoin caused it to lose its peg against the dollar. The former LUNA, now the Luna Classic, fell 100%, ruining some investors.
The Terra project has gone through a hard fork and launched a new LUNA coin. But without the UST stablecoin, its existence may be in question. The LUNA was supposed to stabilize the UST.
Added to these weak fundamentals are the multiple fraud investigations to which Terraform Labs and its CEO Do Kwon are subject to United States and in South Korea.
Celsius Network, a centralized cryptocurrency lending platform, had declared in mid-June that she had halted all withdrawals, trading and transfer between accounts on its platform. This had further dented the crypto markets, with Celsius being a big player.
Celsius makes crypto loans the same way a typical bank lends money. Before this incident, the site offered very high returns on cryptocurrency deposits, up to 18.6%.
As for Anchor Protocol of Terra, Celsius would no longer have assets to back up the deposits. Either way, blocking withdrawals as markets fall can lead to widespread panic that crashes the ecosystem.
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The choice of Solana may well shock! But since January 6, 2022, the blockchain of Solana experienced 12 major outages. According to Solana’s internal uptime audit, the shortest outage lasted 75 minutes, while the most concerning lasted 18 hours and 12 minutes.
In a highly competitive industry, other more stable networks may overshadow Solana: CardanoPolkadot, etc.