CRYPTO NEWS

Terra (LUNA) tumbles by 90% in 24 hours as UST’s recovery loses steam

Terra (LUNA) has continued its sharp decline from the start of the week. The ecosystem which is known for its stablecoins is experiencing its worst crash in months, and there are fears that the worse is not even over. Here are the key latest developments:

  • LUNA has fallen by nearly 90% over the last 24 hours, following two days of steep losses.

  • The crash comes as its stablecoin UST lost significant value against the dollar.

  • UST has fallen sharply again after showing signs of recovery 

Data Source: Tradingview 

Why is the LUNA crash far from over?

In the last few days alone, Terra (LUNA) has seen a sharp decline of over 170%. The crash is one of the worst in the history of the stablecoin platform. The steep losses were triggered after its main UST stablecoin lost its value against the dollar. 

UST is pegged against the US dollar at a ratio of 1:1. At one point, the stablecoin was trading at around 70% less than the value of the dollar. This has sent a lot of LUNA investors panicking and as such, the sell-off has begun. We had seen UST recover slightly but these gains have reversed sharply.

LUNA will face significant selling pressure. The confidence that investors had in UST is now severely dented, and it will take time for the coin to recover from this. As of now, expect sharper declines in the token price over the coming weeks.

What’s the long-term outlook for Terra?

Despite the UST debacle, Terra still remains one of the biggest stablecoin platforms in the world. However, there is no doubt that this incident will have far-reaching effects on LUNA’s price in the short term. 

But we expect the platform to recover in the longer term, and once UST is able to regain its 1:1 ratio against the dollar, investor confidence will certainly improve.

The post Terra (LUNA) tumbles by 90% in 24 hours as UST’s recovery loses steam appeared first on Coin Journal.

Proposed Crypto Mining Ban in Norway Fails to Gain Support in Parliament

A push to prohibit the energy-intensive proof-of-work mining of cryptocurrencies in Norway has been rejected by the majority of lawmakers. The ban had been suggested by the far-left Red Party which also didn’t win backing to raise an electricity tax for crypto miners. Norway Will Not Ban Bitcoin Mining The parliament of Norway has considered::Listen

Proposed Crypto Mining Ban in Norway Fails to Gain Support in Parliament norwegian parliament SLfBzY | BuyUcoin

A push to prohibit the energy-intensive proof-of-work mining of cryptocurrencies in Norway has been rejected by the majority of lawmakers. The ban had been suggested by the far-left Red Party which also didn’t win backing to raise an electricity tax for crypto miners.

Norway Will Not Ban Bitcoin Mining

The parliament of Norway has considered and voted against a draft law banning the minting of digital currencies based on the proof-of-work concept. The legislation, which was proposed by the communist Red Party in March, was supported only by two other leftist parties, SV (the Socialist Left Party) and MdG (the Green Party).

“We are obviously disappointed with the majority here,” Red lawmaker Sofie Marhaug told the E24 news portal. She added that the Norwegian society must determine its priorities regarding power usage. Her party says bitcoin mining is extremely energy-intensive and insists on putting an emphasis on the needs of other industries and climate change goals.

However, as Marhaug pointed out, the majority in the Storting, Norway’s legislature, wants to prioritize the market, and “give the bill to Norwegian electricity consumers.”

The Red also failed to win support for a proposal to revise the electricity surcharge for mining data centers, accusing the Labor Party (Ap) and Centre Party (Sp) of breaching a pre-election promise. The two parties had announced they would seek a full electricity fee for mining farms.

While households, many businesses, and the public sector currently pay 0.15 kroner (approx. $0.02) per kilowatt-hour of spent electricity, the industry, including data centers, enjoys a reduced levy of just 0.0055 kroner per kWh.

In February, the Norwegian government said it will try to avoid imposing a crypto ban, but made it clear it was considering various measures regarding the electricity consumption in the sector. In November, Norway admitted it’s mulling over ways to limit the environmental impact of bitcoin minting and may support a Swedish proposal for a European ban on proof-of-work mining.

“In a time of energy scarcity and challenges with cutting emissions, it is particularly harmful that power is wasted only to enrich individuals rather than being used for socially beneficial purposes,” the three leftist parties said. However, the parliamentary majority has objected to the politically motivated discrimination against mining data centers.

What do you think about the debate in Norway on the future of the crypto mining industry? Share your thoughts on the subject in the comments section below.

Terra (LUNA) tumbles by 90% in 24 hours as UST’s recovery loses steam

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