UST stablecoin loses $1 peg as crypto whales dump large stakes

May 09, 2022 11:34 AM ETTerraUSD (UST-USD), LUNC-USDBy: Max Gottlich, SA News Editor4 Comments

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  • TerraUSD (UST-USD), the third largest stablecoin by market cap, lost its peg to the U.S. dollar over the weekend, dropping below $1 to its lowest in nearly a year, according to data from CoinMarketCap.
  • The algorithmic stablecoin on May 7 fell to as low as $0.987, recovering a bit to $0.991 at the time of writing.
  • Apparently the de-pegging "was deliberate and coordinated," Terra Co-founder Do Kwon retweeted a Twitter post dated May 7. "Massive 285m UST dump on Curve and Binance by a single player followed by massive shorts on Luna and hundreds of twitter posts."
  • Furthermore, another crypto whale had swapped almost 85M UST for nearly the same amount of USD stablecoin (USDC-USD), Bloomberg reported, citing data from Etherscan.
  • Meanwhile, Luna (LUNA-USD -11.0%) tokens, the sister coin of UST, are tumbling amid a broader selloff in risk assets.
  • In mid-April, ether-based protocol Beanstalk fell from its $1 peg.
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