Despite the hazards, Terra’s ‘crazy volatility’ appeals to many short-term investors, primarily since LUNA surged 600% in value on May 14.
The Terra (LUNA) ecosystem spiraled down in just seven days, with prices plummeting from $85 on May 5 to virtually $0 on May 12. As the market began to understand what had happened, the trading volume of LUNA increased by almost 200 percent over the weekend.
As a result of the UST de-pegging, which destroyed the LUNA market, LUNA investors followed suit, with CoinGecko reporting a drop in trade volumes to $178.6 million on May 13 – the lowest level since February 2021.
On the same day that he offered a resurrection plan for Terra’s recovery, Terraform Labs CEO and co-founder Do Kwon tried damage control by rewarding UST and LUNA holders for holding the tokens throughout the crash.
Despite the hazards, Terra’s ‘crazy volatility’ appeals to many short-term investors, owing to the fact that LUNA surged 600 percent in value on May 14.
$LUNA is the first coin in history to go to zero and then 100x, all within a week.
— Luke Martin (@VentureCoinist) May 14, 2022
The trading volume of LUNA increased by nearly 200 percent to $6 billion as investors try to recoup their losses and others try to profit from Terra’s rebound. Over the previous two years, the LUNA ecosystem routinely registered over $2 billion in trade volumes until the crisis.
However, when LUNA prices fell between May 10 and May 13, trading activity increased as investors sought to mitigate their losses, which ranged from $5 billion to $16 billion. On May 11, the trading volume of LUNA reached an all-time high of $16.15 billion.
Due to the aforementioned circumstances, LUNA has recovered its trading volume and is currently trading at $0.00025. According to CoinMarketCap statistics, Binance accounts for 68.26% of LUNA’s trading volume, with KuCoin accounting for 9.52 percent and FTX accounting for 1.13 percent.
Users on Crypto.com expressed worry on Friday that LUNA deals were being reversed on the exchange’s mobile app.
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Kris Marszalek, the CEO of Crypto.com, subsequently acknowledged that the system displayed false pricing due to an internal issue, resulting in many investors making 30-40x gains.
A lot of noise on this, so let me comment.
For 59 minutes we were quoting prices 30-40x ABOVE market prices for Luna due to technical glitch that affected the retail app and NOT the exchange. https://t.co/XMjSnWQ6aO
— Kris | Crypto.com (@kris) May 13, 2022
As a result, Crypto.com temporarily disabled all trading for all users. “All user accounts have been re-enabled,” Marszalek said after a day of reviewing the alleged system malfunction.
The business has provided concerned investors $10 worth of its in-house coin Cronos (CRO) as a goodwill gesture.