LUNA, the native token of the LUNA system, is going through extremely difficult times recently.
Data on May 13 shows that the total supply of this token has reached an unbelievable level of 6,900 billion LUNA.
LUNA has a value close to zero while the total supply is 6,900,000,000,000 LUNA
After a tumultuous week, Terra attempted to rescue LUNA along with its stablecoin, TerraUSD (UST). However, things got worse and worse.
Despite selling a large volume of BTC in the fund and injecting liquidity to save UST LUNA, these two tokens both continue to “sink” further.
At the time of writing, LUNA has dipped to $0.00005474 according to CoinMarketCap, which is close to zero.
Although there was a lot of force to catch the bottom of this copper, LUNA did not stop falling in price. At the same time Terra’s (LUNA) efforts seem to have exacerbated the situation.
Due to LUNA’s measure, the supply of this token has spiked since May 8. Make this token a hyperinflationary coin.
On 11/5, 1.8 billion LUNA was minted and added to the existing supply of 764 million tokens. If you think that’s a lot, on May 12, 185 billion tokens appeared and finally on May 13, 6,700 billion LUNA were minted! A terrible number.
Famous commentator Hodlonaut, founder of Citadel21 briefly stated: “With Bitcoin, there is also Shitcoin”
The worst Ponzi scam?
Due to its severity, the demise of LUNA is attracting a lot of attention. Especially many people have compared it to famous ponzi scams in history like BitConnect and OneCoin.
David Hoffman, co-founder of crypto news site Bankless, compared the magnitude of the LUNA case to BitConnect in the chart below:
“LUNA is the most serious case I have ever seen in crypto,” commented popular trader MDXCrypto.
“Worse than Bitconnect, worse than OneCoin, worse than Axie, worse of all.”
As recently reported, Terra proposed a plan to save the entire ecosystem, as well as suspend the LUNA network an hour later.
“Even if LUNA and UST survive this period, in the long run it takes some genius changes to be made to reinforce market confidence that LUNA’s market capitalization will always surpass UST,” said Arthur. Hayes, the former CEO of derivatives platform BitMEX, wrote in the first part of a series of blog posts about stablecoins, titled “Luna Brothers, Inc.” May 13 release:
“I don’t know how this is done.“
LUNA/USD is currently trading at $0.0077 on Bitfinex at press time, according to data from Cointelegraph Markets Pro and TradingView.