##  [# Terra ETPs Plummet As Stablecoin De-Pegs From US Dollar](/sections/bitcoin-crypto/terra-etps-plummet-stablecoin-de-pegs-us-dollar) 

 

# Terra ETPs Plummet As Stablecoin De-Pegs From US Dollar

 

 

 Luna lost 98% of its value over the past week.



 

 

 

 

 [![etf](/sites/default/files/styles/author_image_icon/public/2023-03/etf_com_logo.png?itok=tX9VZitZ "etf")](/contributors/theo-andrew) 

[By Theo Andrew](/contributors/theo-andrew)

 May 13, 2022

 Edited by: Theo Andrew

 

 

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***\[Editor’s note:*** *[This article originally appeared](https://www.etfstream.com/news/terra-etps-plummet-as-stablecoin-de-pegs-from-us-dollar/) on ETF Stream\]*

**London** – Crypto token Terra and its sister crypto coin Luna plummeted on 11 May after the stablecoin de-pegged from the US dollar.

TerraUSD (UST) – which is supposed to maintain a 1-to-1 peg with the US dollar – was trading at $0.61, as at 08:00 on Thursday, having fallen to a low as $0.26 earlier in the day.

Luna also saw its value plummet on Wednesday to $0.90 before recovering slightly to $1.78. The crypto coin has lost roughly 98% of its value over the past week.

UST is a decentralised stablecoin that mints and burns tokens to stabilise the price in line with the dollar in a bid to avoid the volatility associated with cryptocurrencies.

Terra was co-founded in 2018 by Daniel Shin, one of the founders of South Korean eCommerce platform TicketMonster, and Do Kwon, a former Microsoft and Apple software engineer. The coin also offers financial tools applications and NFT solutions.

After the coin depegged, Kwon made a last-ditch attempt to restore UST to its alignment with the dollar by increasing the rate of luna minted per day in a bid to boost the price.

UST backers are seeking $1.5bn to help prop up the coin, according to *[Bloomberg](https://www.etfstream.com/companies/bloomberg/)*.

ETF issuers have launched several crypto ETPs tracking terra in recent months.

21Shares launched the [world’s first terra ETP](https://www.etfstream.com/news/21shares-unveils-world-s-first-terra-crypto-etp/), the [21Shares Terra ETP](https://www.etfstream.com/news/terra-etps-plummet-as-stablecoin-de-pegs-from-us-dollar/) (LUNA), in January, with roughly $5m assets under management.

This was followed by the Valour Terra (LUNA) ETP which [launched in February](https://www.etfstream.com/news/valour-expands-crypto-etp-range-with-terra-and-avalanche-launches/) and the VanEck Terra ETN (VLNA) which [launched last month](https://www.etfstream.com/news/vaneck-launches-algorand-terra-and-ftx-crypto-etns/).

The impact of terra’s freefall has been felt across the crypto market which was already licking its wounds from [recent declines](https://www.etfstream.com/news/bitcoin-and-ethereum-etps-hit-in-crypto-price-crash/).

Bitcoin was down a further 3.6% at the time of writing at $29,861, the first time it has dipped below $30,000 since December 2020. Ethereum was down 6.7% on Wednesday at $1,777.

The crypto price crash comes at a time of a [broad downturn](https://www.etfstream.com/news/nasdaq-index-sees-worst-monthly-performance-since-2008/) in financial markets and calls into question its ability to act as a diversifier.



 

 

 [ Theo Andrew ](/contributors/theo-andrew) 

 

 

  Theo Andrew joined ETF Stream as a senior reporter in September 2021. He has over four years of investment writing experience spanning pensions and…   [View Bio](/contributors/theo-andrew)

 



 

 


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