# Terra Crash - May 2022

Terra an algorithmic stable-coin that should maintain a $1 peg is crashing and has broken its peg (first on sunday 8th May) and then more seriously on 10th May 2022.

The organization is liquidating large amounts of bitcoin (over $2bn) to try and defend the beg which illustrates the potential contagion risk in the crypto ecosystem.

> Terra (LUNA) Collapses 60% as UST “Stablecoin” Drops Below $0.7 - https://u.today/terra-luna-collapses-60-as-ust-stablecoin-drops-below-07

https://blazetrends.com/terra-price-collapses-after-attempt-to-rescue-stablecoin/

> A complete collapse of Terra
>
> Rumors of a complete collapse of Terra quickly spread on social media. Nevertheless, the company co-founder, Do Kwon, kept calm. However, the founder had to liquidate a huge number of Bitcoins to save the stablecoin.
>
> Data from monitoring source BitInfoCharts confirmed the huge sales. The balance of the de Luna Foundation Guard went from 70,000 Bitcoin, (worth $2.23 billion), to 0 Bitcoin.
>
> The Luna Foundation Guard did say that they have not sold all Bitcoin and promised to update the community on the current situation.

https://twitter.com/vhranger/status/1523835842573357057