Bitcoin news – live: Crypto prices collapse with Tether latest ‘stablecoin’ to suffer

One user said the millions they had invested in the Luna cryptocurrency were now worthless.

“My 2.8 million dollars is literally worth $1000”, they tweeted, adding “Man bought the dip and lost:

“The extreme volatility that we’ve witnessed across the cryptocurrency market over the past 24 hours is demonstrable of just how nascent the technology is. The capitulation of Terra Luna and the issues that we see with Terra’s dollar-pegged algorithmic stablecoin UST are part of the growing pains of a space where innovation charts a course at a frenetic pace”, Bitfinex Market Analysts told The Independent.

The real story of the day is the relatively strong performance of the three leading cryptocurrencies, bitcoin, Ethereum and Tether tokens (USDt). The trinity stands strong, demonstrating the strength and resilience of a digital token ecosystem that will define this entire decade.”

Binance has announced warning measures against the Luna cryptocurrency.

“Due to the existing tick-size constraints of the LUNAUSDT perpetual contracts, Binance Futures will take the following precautionary measures”, the company wrote in a blog post.

“Should the price of the LUNAUSDT contracts go below 0.005 USDT, Binance shall proceed to delist the contracts. Any further information including the delisting time will be announced accordingly.”

Many people are criticising celebrities like Larry David and Matt Damon for appearing in ads promoting crypto without properly explaining the risks.

“With those who almost adventured, who almost achieved, but ultimately for them it proved to be too much. Then, there are others – the ones who embrace the moment and commit.”

In a Twitter Space voice chat, Paolo Ardoino, Tether’s chief technology officer reportedly said that Tether holds the majority of its reserves in United States Treasuries.

Tether, another stablecoin, dropped to a low of 95 cents by early Thursday morning.

As the largest stablecoin, it is a foundational part of the cryptocurrency ecosystem. It is the first time it has dropped below $1 in two years.

Like all stablecoins, it is supposed to maintain its price to fiat currency. One tether should always equal $1.

“The lack of transparency provided by Tether on the quality of commercial paper they hold to back the peg made it the obvious next target,” BCB Group’s Usher told Reuters

“However, Tether is a very different animal to Terra, with a more proven ecosystem and I have far more confidence that when volatility subsides it can regain its peg and stability,”

Eight days prior to the crash, Do Kwon said: “95% [of coins] are going to die, but there’s also entertainment in watching [them] die too.”

Do Kwon, the founder of the Luna cryptocurrency, has a history of mocking people for not investing in his coin.

Luna has recently dropped nearly the entirity of its value, dropping below $1 on Wednesday having peaked close to $120 last month

“Five years ago, people who were in crypto were crypto people,” said Mike Boroughs, a founder of the blockchain investment fund Fortis Digital. “Now you’ve got guys who are across the whole span of risk assets. So when they’re getting hit over there, it’s impacting their psychology.”

In the wake of cryptocurrencies’ falling price, traders are increasingly treating them like just another speculative tech investment, the New York Times reports.

“It delegitimizes the argument that Bitcoin is like gold,” said Vetle Lunde, an analyst for Arcane. “Evidence points in favor of Bitcoin just being a risk asset.”