The price of Terra (LUNA) has tanked by more than 14% over the past 24 hours
Kwon, however, was mocked by some Twitter users for alleging the 62% “others” portion of the now-deleted pie chart was a single entity to back up his conspiracy theory. has already become the third-largest stablecoin by market value, surpassing However, some critics warn that algorithmic stablecoins are inherently fragile since they are not backed by dollars. It uses a complex arbitrage system in order to maintain its peg.
After recognizing the risk of the two-coin system, Terra also recently moved to add Bitcoin reserves. In such a way, it wants to ensure the stability of the stablecoin during market turmoil. Earlier this week, Luna Foundation Guard announced another $1.5 billion Bitcoin purchase, but it failed to move the market.
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