Terra (LUNA), which has risen more than 200 percent in the past days, is recording serious decreases today. So why does Terra fall?
The news flow from the Terra front and the decline in the markets also affected Terra.
What Caused Terra’s Fall?
Terra (LUNA), which has increased by more than 200 percent in the past days, has decreased by 33 percent today according to CoinGecko data. One of the factors in LUNA’s downfall is South Korea’s arrest warrant for Terraform Labs founder Do Kwon.
LUNA’s 4-hour chartWhen we examine Terra’s (LUNA) 4-hour chart, we can see how volatile LUNA is. LUNA started to decline after its rally due to the news and the general decline in the market.
Previously, LUNA and UST were two of the top 10 cryptocurrencies by market cap. Afterwards, with the removal of the peg of the UST against the dollar in the Terra network and its collapse, a serious decline occurred in the market. Terra’s collapse had a negative impact on many companies and led them to bankruptcy. A few of these companies are Three Arrows Capital, Voyager and Celsius. Although an arrest warrant has been issued for Do Kwon, the founder of Terraform Labs, in South Korea, he currently resides in Singapore.
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