How a Crypto Bank Run In Terra’s UST Could rock cryptocurrencies

 Recently crypto markets saw a downfall with many Cryptocurrencies and Digital Assets going down in value. Among these cryptocurrencies was the stablecoin TerraUSD(UST) of the terra blockchain along with its sister token Luna losing its value from 82 dollars to 17.2 dollars in just 5 days.

Stablecoin lost its value following some very unfortunate events. On Saturday the Luna foundation Guard (LFG) which is a non-profit organisation supporting the terra blockchain, unintentionally triggered a mega sale of the stablecoin worth millions of dollars. This happened because LFG was removing UST valuing around 150 million dollars from the curve. Do Kwon stated this publicly?

Following this an unknown address also sold around 84 million dollars in UST which made the demand of UST off balance on the curve. This led to more holders to sell the stablcoin more. By midday the price of the stablecoin went down to 95 cents and by evening it had already went down to 30 percent, from 99 cents to 69 cents. The sister token Luna meanwhile went to 17 dollars from 60 dollars that is more than 55 percent of drop in less than 24 hours.

“Algorithmic stablecoins are based on confidence and trust in the economic incentives of the stablecoin issuer's underlying ecosystem. Once that trust and investor demand evaporates, they quickly fail in a death spiral,” said Ryan Clemens to Yahoo Finance who didn’t seem much surprised

by these events. “And we saw that.” Ryan works in the University of Calgary as an assistant professor of Business Law.

The Luna Foundation Guard (LFG) deployed 1.5 million dollars’ worth of bitcoin and UST loans to save both the cryptocurrencies. Regardless of the future of the stablecoin it’s fair to say that this battle will have a lasting impact on the market

John Kramer, who is the head of DeFi trading told yahoo finance that, “Besides the obvious, real money and people’s livelihoods are at stake, these types of crypto monetary experiments are important for the evolution of the space,”. “Whether UST ultimately recovers or collapses, it motivates others to build more robust stablecoin alternatives.”

The whole point of stablecoins is to provide stability in terms of price unlike cryptocurrencies whose nature is to fluctuate on daily basis. Their value is determined by another asset often times which is USD. Some of the biggest stablecoins are tether (USDT) and Circles’s USD coin (USDC).

 

 

Crypto Exchange via Kraken

Kraken is a United States based Cryptocurrency Exchange. Kraken is a cryptocurrency exchange which offers various cryptocurrencies for users to trade. The crypto exchange allows users to purchase and sell crypto currencies using various fiat currencies. kraken also offers you to trade between cryptocurrencies. kraken is one of the oldest and most trusted crypto exchange in the

world. It has been there since 2011. It offers trading in more than 175 countries and provides more than 90 cryptocurrencies.

 

HOW TO START

Beginners do significantly well with kraken exchange. Trading on Kraken crypto exchange is fairly easy because of the user-friendly interface. Signing up on kraken is also not complicated at all. You are required to verify yourself and provide legal documents for the same.

 

Customers need to verify and authenticate themselves, only then they will be able to buy and sell crypto currency.

 

HOW TO TRADE

Kraken is a dynamic cryptocurrency exchange platform. It offers two platforms for both the types of customers, beginner or professional. If you are an experienced cryptocurrency trader then you will prefer Kraken Pro and if you are a beginner and new to the digital world then kraken is your way to go. It offers more than 90 crypto currencies and accepts trading in fiat currencies like US dollars, Japanese yen, Canadian dollars, Euro, British pounds, Swiss franc etc. in over 180+ countries. Some popular currencies available are

 

·         Bitcoin (BTC)

·         Ethereum (ETH)

·         Cardano (ADA)

·         Dogecoin (DOGE)

·         Litecoin (LTC)

·         Polkadot (DOT)

·         Polygon (MATIC)

·         Ripple (XRP)

·         Stellar Lumens (XLM)

·         Solana (SOL)

·         Sushi (SUSHI)

·         Uniswap (UNI)

 

A kraken trading account or wallet can be made. Kraken offers different modes of transactions like make bank transactions, wired transactions or digital wallets such as pay pal etc. the account management is also quite simple. You can manage your account through website or app whichever is preferable for you.