What happened to the Terra Luna crypto?

How the Terra Luna crypto works, the coin’s price crash explained and if it could recover The cryptocurrency Terra (Luna) has collapsed, losing more than 99 per cent of its value. The coin’s value tumbled dramatically on Wednesday, falling from around $6.75 to just over $1.

What is the Terra Luna blockchain?

The Terra Luna blockchain has its own Luna currency, in the form of LUNA, as well as the Luna currencies within its ecosystem, the Terra stablecoins. LUNA token: LUNA is the native staking token for the network, as well as being the foundational asset for the entire ecosystem. It has two main functions.

What is Luna (Luna)?

Luna was Terra’s blockchain native token, similar to how ether is used on the Ethereum network. Luna had four different roles in the Terra network: A method to pay for transaction fees in the Terra network. A mechanism for maintaining Terra’s stablecoin peg. Staking in Terra’s delegated proof of stake (DPoS) to validate network transactions.

What is the Luna token used for?

The LUNA token is used to reward these staking nodes for maintaining the blockchain’s security. Stability: The LUNA token is also used to ensure the stability of Terra stablecoins, as they are inextricable linked to create stability. Terra stablecoins are only produced when the equivalent LUNA is burnt, allowing for the hedging of assets.