What happened to Luna crypto?

There are two stories regarding Luna crypto: the TerraUSD/UST stablecoin and the actual Luna coin. Once Luna and UST crashed, there was a total liquidity crunch in the cryptocurrency space that caused an even more catastrophic loss of value. The crypto community still hasn’t recovered.

What is Luna (Luna)?

LUNA is a cryptocurrency coin based on the Terra blockchain, which makes it possible to create and exchange digital assets. LUNA is a native token of the Terra blockchain that's used to pay transaction fees and reward other users for participating in the network. LUNA can be used to buy goods and services from businesses that accept such coins.

What happened to do Kwon's Luna coin?

Do Kwon shared a recovery plan for Luna, and things looked promising for a brief period of time in May after the original crash. But the coin ultimately plummeted. It was promptly abandoned. Terra ended up launching a new coin, Luna 2.0. On September 15, it was announced that a court in South Korea had issued an arrest warrant for Do Kwon.

What is the Luna token?

The LUNA token is one of the ecosystem's key elements, often described as a staking token. The Terra blockchain has implemented a dual-token system between UST and LUNA, where USTs were minted by burning LUNA. If the UST value went above #1, the equivalent LUNA would be burned. It made UST less valuable by minting more UST units.