Sunday, October 2, 2022
HomeAltcoinsLuna free fall continues drops another 12 percent today.

Luna free fall continues drops another 12 percent today.

LUNA dropped another 12 percent today, trading under USD 44 and bringing its weekly loss to 35 percent.

The unfavorable perception surrounding Terra is may be due to its connection with Magic Internet Money (MIM). In addition, Terra’s Abracadabra protocol has a strong connection to Wonderland also. 

What is Magic Internet Money associated with Terra?

The Abracadabra.money, a decentralised lending network, generated Magic Internet Money (MIM), using interest-bearing crypto assets as collateral. MIM is a stablecoin which is soft-pegged to the US dollar. These MIM can be exchanged for other stablecoins.

Confused about Soft Peg?

In simple words, soft pegging refers to when a currency is permitted to trade within a certain range. For example, the Chinese yuan is permitted to move within 2 percent of a price point set by the Chinese government each day in relation to the US dollar.

The price of LUNA has dropped by more than 50 percent in the last month. Terra’s free-fall appears to be a cause for concern, while other cryptocurrencies in the top ten crypto-list have recovered.

It’s tough to predict how Terra’s LUNA will perform in the future?

 

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