Terra Stablecoin peg drops below $0.90 - despite loan from Bitcoin reserves

Terra Stablecoin peg drops below $0.90 - despite loan from Bitcoin reserves

Terra Stablecoin peg drops below $0.90 - despite loan from Bitcoin reserves The Luna Foundation Guard $1.5 billion in reserve assets to support ground tanker interconnection. However, the price of the stablecoin, which should be $1, continued to fall. The decoupling comes amid a general downturn in the market. Terra's ground tank, the third-largest stablecoin by market cap, fell to $0.69 in Monday's trading, an all-time low according to CoinMarketCap data, even after Terra's backer Luna Foundation Guard accelerated a $1.5 billion loan to back the coin. On Coinbase, the listed price is down to $0.65. Terra is a blockchain network Terra is a blockchain network with a dollar-based stablecoin, UST. Unlike USDC and Tether, which are ostensibly backed by cash and bank assets, the UST stablecoin is designed to have a 1:1 parity with the US dollar through its algorithmic relationship with Terra’s native asset, LUNA. Mining LUNA requires burning the floor tanks and vice versa - and it…