Cryptocurrency luna crashes to $0 as UST falls further from dollar peg; bitcoin rebounds 8%

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Cryptocurrency luna crashes to $0 as UST falls further from dollar peg; bitcoin rebounds 8%

Staged a rebound on Friday, jumping above $30,000 despite the ongoing woes of stablecoin TerraUSD which has caused panic in the crypto market. The world's largest cryptocurrency bitcoin was trading at around $30,262.85 at 4 a.m. ET on Friday, according to CoinGecko data, up 8% in the last 24 hours after it dropped to levels not seen since late 2020 earlier this week. However, the digital currency is still down 16% in the last seven days. The recent crypto meltdown, which has seen , has in large part been sparked by the crash of a controversial stablecoin known as or UST, which is supposed to be pegged one-to-one with the U.S. dollar. UST has however lost its peg and on Friday was trading at around 14 cents, according to data from CoinGecko. , a token closely associated with UST, is now worth $0 as a result. UST and luna are linked. UST is dubbed an algorithmic stablecoin meaning its $1 peg is supposed to be governed by underlying code. That is fundamentally different to other stablecoins like and which are backed by real-world assets such as bonds. UST has no real-world reserves. The UST algorithm works through a to maintain

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