LUNA is the original symbol for Terraa blockchain Founded in 2018 and launched its mainnet in April 2019 through the Cosmos SDK platform, which focuses on creating calls stablecoins.
In this scenario, LUNA has to act as collateral for the rest of the cryptocurrency that it resorts to. Earthlike US dollars, so that it can be converted back into LUNA later, which makes it different from others stablecoins.
In order to “pin” the Terra stablecoin, the miner or Cryptocurrency generator You must convert it into a fiat value, i.e. the EUR stablecoin will be convertible into a LUNA of one euro; The same thing will happen with Other types of currencies Like the dollar, the Argentine peso, the won, the yen, among others, ensuring its “stability” by keeping it at a fixed rate.
For example, if the price of terra UST is $9.98, the trade-in is $1, so users will earn 2 cents, which is the case It will increase demand for underground storage tanks and reduce supply through burning (destroying some units), which may generate a price hike if the amount of demand is maintained.
The relatively new digital currency questioned its supposed stability after the early days of May 2022, as digital currencies faced a crisis that was dragging one after another and Terra blockchain investors started dumping them. It caused a “shock” in the computational mechanism Used to stabilize its value, which means that LUNA has fallen by 99% of its value. With that, its value of $118 closed below 0.0001 percent.
Terra cryptocurrency quote
hour: 16:05 (UTC)
cost: 1.3332273 dollars
Change in the last 24 hours: 0.68%
Change in the last hour: 2.23%
popular in capital letters: #127
Cryptocurrency, what is it and how does it work?
Digital currencies were born in 2008 As an alternative to the devaluation of various currencies as a result of the economic crisis that year.
It was the first digital asset ever created Bitcoins Over time, others appeared Litecoin, Ethereum, Bitcoin, Cash, Ripple, DogecoinSome of the most famous.
Cryptocurrency works through a Encrypted encryption ensures the security of transactions, as well as control over the creation of your coins .
to make transactions, Cryptocurrencies use a decentralized database, blockchain, or shared ledger.
It is important to note that cryptocurrencies are digital assets that do not physically exist, and unlike currencies such as the dollar, euro or peso, they are not regulated by any institution and do not require intermediaries in the transactions.
The latter has caused discontent with the official market of cryptocurrencies, accusing them of being unreliable, volatile, encouraging fraud, not having a legal framework to support their users, allowing illegal activities to run, among other things.
However, the corridor was opened up so little by little that corporations, millionaires, and even states encouraged or allowed its use.
Elon Musk, one of the richest men in the world, made comments in favor of virtual currencies like Bitcoin and Dogecoin, temporarily allowing their use in electric car company Tesla, causing their prices to skyrocket.
in savior, President Najib Bukele legalized bitcoins, becoming the first country to do so. In case if Mexicoone of the richest businessmen in the country, Ricardo Salinas Bligo, announced his intentions to accept cryptocurrency in his companies, one of his main businesses – Electra Store – is already doing so.
For his part, the chief said ArgentinaAlberto Fernandez used it to combat inflation. even in Peruthe central bank warned that it is working on its own digital currency project.
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