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Dear TerraUSD (UST) Crypto Fans, Mark Your Calendars for May 27th

  • In the midst of an incredible implosion for TerraUSD (UST-USD) and Earth (LUNA USD), various exchanges derive their support
  • Investors will no longer be able to trade the UST on Coinbase (NASDAQ:PIECE OF MONEY) from May 27
  • The future of the Terra network remains largely uncertain

Source: David Sandron /

If investors need more negativity outside of the stock market, take a look at the crypto market. Investors in TerraUSD (UST-USD) and the crypto UST took a ride to hell.

UST is a stablecoin that is supposed to be pegged to the US dollar. However, the token broke off its peg in an incredible fashion, now trading around 10 cents each. Its brother token Earth (LUNA USD) also crashed to levels near zero.

Various exchanges are not waiting to cut their losses, even if some investors are “lagging”. This week, major exchanges such as Coinbase (NASDAQ:PIECE OF MONEY), Binance and others removed LUNA and UST tokens. In the case of Coinbase, this suspension of trading for UST and LUNA packed (WLUNA-USD) is should take place May 27.

Let’s dive into what might be on the horizon for Terra, in light of these headwinds.

Where does UST Crypto go from here?

In many ways, investors could argue that the game is already over for UST and LUNA. The experts have said so.

An algorithmic stablecoin ecosystem, Terra was designed to redefine how stablecoins work. Rather than backing this stablecoin with US dollars or other durable assets, Terra took an unconventional route by backing UST through a mathematical relationship with LUNA. In 2022, it also added reserves of Bitcoin (BTC-USD) and other cryptos.

But with the broader crypto market, UST found little support and lost its footing. This stablecoin may be DOA, marking quite a significant event for crypto maxis. However, Do Kwon and the Terraform Laboratories The team has concocted a plan to relaunch Terra 2.0 later this month as well.

It remains to be seen whether the new Terra will be listed on leading exchanges or not. Indeed, a significant amount of reputational damage was done. For now, investors will have to wait until the end of the month to find out more. Right now, I think anything Terra-related is just too risky to even consider.

As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to publishing guidelines.

Chris MacDonald’s love of investing has led him to pursue an MBA in finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative long-term investment outlook.


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