Cryptocurrency markets
Cryptocurrency markets are reeling after a widely used currency lost 99 percent of its value, leading to a significant decline in the value of a "stable" cryptocurrency.
Terra Luna's digital currency fell from $118 last month to $0.09 on Thursday. This decline indirectly affected a digital dollar-linked currency, TerraUSD, which is usually stable.
This has led to concern among investors who have been quick to get rid of their cryptocurrencies, which in turn has led to a decline in the market.
Companies behind stable cryptocurrencies are trying to ensure that the value between those currencies continues to be equal and stable assets such as the UNITED States dollar - meaning that each single digital currency is equivalent to one dollar, for example.
But on Thursday, Terra USD fell to $0.40, according to the coin market cap.
Tether, the most common stable cryptocurrency linked to the US dollar, also fell to an all-time low of $0.95.
digital currency collapse
The phrase "digital currency collapse" topped the list of the most widely circulated words via Twitter and Google.
The total market value of all cryptocurrencies combined today is reported to be $1.12 trillion, equivalent to about a third of their value last November. Thirty-five percent of the loss occurred this week.
Bitcoin is worth about $27,000 today, according to CoinMarket Cap -- its lowest value since December 2020 -- down from nearly $70,000 last year.
Ethereum, the second most widespread cryptocurrency, lost 20 percent of its value in 24 hours.
The collapse of terra usd sparked what we used to call "panic waves,"" as major financial institutions sell assets in large quantities, and all speculators try to withdraw their money as quickly as they can, according to economist Francis Coppola.
"Panic is exactly what's happening here," Coppola says.
Terraform, which is behind Terra Eusd and Terra Luna, on Friday took the unprecedented and controversial step of halting trading on its Blockchain platform.
In a tweet, Terraform said it had to take the step until it could rearrange its papers.
Earlier, De Kun, founder of Terraform Labs, tweeted: "I understand how difficult the last 72 hours have been for all of you - and I know I am determined to work with each of you to get through this crisis, and we will find our way out of this crisis."
A process aimed at saving Terra Luna's currency has been outlined by launching more cryptocurrencies - but a huge loss of money has left many Twitter tweeters begging the company to help them.
Meanwhile, the Discord platform, which investors are discussing on emerging issues, posted an alert saying it had been "shut down so that some do not post concerns, fuel uncertainty, raise doubts, and spread misinformation."
At Teather, the head of the technical department tweeted to reassure traders in Thether's currency that the company had enough cash reserves to pay anyone who wanted to sell.
regulation of the use of cryptocurrencies.
Legislators and officials in a number of countries have called for regulation of the use of stable cryptocurrencies.
At a Senate meeting on Tuesday, U.S. Treasury Secretary Janet Yellen recalled the collapse of terra USD, once again calling for a strict regime.
"It simply makes it clear that we are looking for a product that is growing at a rapid pace, that there are risks to financial stability, and that we need an appropriate framework," Janet said.
A British Treasury report last month included plans to regulate the use of stable cryptocurrencies, which the report predicts will become a "common payment method."