The [Terra Luna](https://coinmarketcap.com/currencies/terra-luna/) collapse wiped billions from the crypto market. Will it recuperate?

Visualise the moment when your entire investment is wiped out suddenly. That's the harsh reality for millions of investors in the Terra Luna cryptocurrency. Its value dropped dramatically from more than $100 per coin to less than $1, losing 99% of its value within a few minutes and sending huge repercussions around the whole crypto world.

So, what's the reason behind Terra's Luna cryptocurrency price collapse, and what impact will it have on the crypto market?

## What is Terra Luna?

Terra Labs, a South Korean blockchain development company, designed the project Terra network, which comprises two cryptocurrencies: TerraUSD (UST) and Luna (LUNA).

The Terra network authorises blockchain developers to make custom blockchains and DApps for a broad range of use cases, but typically operates on Delegated Proof of Stake (DPoS) algorithm. The network focuses on DeFi, NFT projects, and Web 3.0 apps. It's linked to other significant blockchains, including Ethereum, Binance Smart Chain, and Harmony, and is deemed a powerful player in the DeFi world.

Terra network possesses two native tokens, UST and LUNA, and both have different functions. UST is a stablecoin, implying its value is pegged to $1 and is utilised to risk or shift tokens when markets become jerky. In contrast, LUNA is a more tradable investment whose price fluctuates depending on market circumstances.

Both coins are intrinsically linked, with UST pegged to LUNA using something named "algorithmic pegging". Typically, a stablecoin is funded 1:1 with a tangible asset, like gold or dollars, ensuring investors that the value will stay at $1 (or reasonably close).

Algorithmic pegging operates a smart contract to alter the value of the linked assets automatically. In this case, the smart contract automatically uses LUNA tokens to mint new UST tokens, maintaining the UST price stable and LUNA deflationary (theoretically). So, no matter the market conditions, 1 UST can consistently be redeemed for or coined for exactly 1 LUNA.

## Reason Behind Terra Luna Collapse

The sudden Terra Luna collapse took place in early May 2022, when the value of UST unexpectedly began falling from its $1 peg.

The unexpected price fall caused a massive number of LUNA to be minted to stable the UST value, saturating the market with LUNA tokens. This pushed the price down and smashed LUNA's price overnight. Indeed, LUNA moved from a top 10 crypto to descending outside the top 150 overnight. Its circulating market supply tripled from about 350 million to more than 1.4 billion in just two days.

Terra Labs had assembled around $3 billion in [Bitcoin](/coins/btc) to begin building a reserve. It wasn't nearly sufficient to stop the market drop. The company was compelled to vend its resources (against a Bitcoin market that has also lost significant value over the same course). Ultimately, there was no more $1 value of LUNA for every UST, implying both cryptos would drop altogether without any clear path to recovery.

UST is an algorithmic stablecoin. Eventually, its stability is naturally related to market volatility. When support for either related cryptocurrency becomes a problem, there is always a possibility that one or both will collapse and witness a market fall.

Now, with the value of UST still not redeemed to its $1, Terra is trying to raise the supply of LUNA to boost the burn rate and saturate the market with coins, putting more downward pressure on the crypto.

## Will Terra Luna recover?

Amid the market crash, Terra Labs CEO Do Kwon presented a Terra Luna recovery strategy to stabilise the present crypto destruction. According to his plan, he will work to stabilise the Layer-1 ecosystem.

The strategy is:

•	A new LUNA with a supply of 1 billion will be spread across the community
•	40% of this LUNA will be given to existing holders before the depeg
•	A further 40% will be given to present UST holders
•	10% will go to current LUNA holders
•	the last 10% will go to a community pool for development

This recovery strategy prioritises the Terra Layer-1 as Kwon and the community strive to protect the broader ecosystem.
Kwon said Terra Luna needs a growing community to make its blockspace valuable again.

"The only way to do this is to make sure that token holders before the attack commenced, the most loyal community members and builders, stick around to keep providing value," he added.

Right now, it is just a proposal to recover the Terra loss. The crypto market is highly volatile and we are left to wait and watch until the market stabilises.
 



Terra Luna Collapse: Why Did It Happen

Trading 212 is a fintech trading platform based in the UK which was launched in 2004 by Borislav Nedialkov. It makes digital trading available to all investors with no commission trading and customer-friendly platforms. Customers can easily purchase and trade forex, stocks, ETFs, and more.

It is the first brokerage company in the financial industry to deliver 0% commission stock trading in Europe and the UK. This has allowed millions of dealers to access the stock markets on a price-friendly basis. 
The bartering platform Trading 212 is certified and regulated by the UK's FCA (Financial Conduct Authority) and the Financial Supervision Commission in Bulgaria. Also, customer funds are kept in separate accounts and are covered up to £85,000 by the Financial Services Compensation Scheme (FSCS). 

The company's mobile trading application has had more than 15 million downloads. It has been rated by around 180 thousand customers, thus making it one of the most famous trading apps.
The trading platform offers three different account types for its investors to trade. The CFD account authorizes to deal on all major markets, comprising over 2,500 instruments such as forex, stocks, commodities, and indices.

The other two accounts, the Invest and ISA accounts, deliver access to more than 10,000 real stocks and ETFs with instant execution on the market's major deals, including the London Stock Exchange, the NYSE, NASDAQ, Deutsche Borse Xetra, Euronext Amsterdam, SIX Swiss Exchange, Bolsa de Madrid. 

## How to Start Trading with Trading 212

Due to the tremendous market demand, the platform has intercepted account opening as they endeavor to extend its services. For now, users can join a waiting list by entering their email addresses, and Trading 212 will inform them when they can open their accounts. Once the platform is live again, you can use the following steps mentioned below to start trading.

### Step 1: Open a Live Trading Account

To begin with, head over to the Trading 212 website and click on the open account button.

The platform then requires you to enter your personal details, including where you live, your name, phone number, date of birth, and national insurance number. Then they ask you to select the account type that fits your trading plans and requirements and the account base currency.

To finish the initial registration phase, you need to click on the I Confirm button at the base of the window.

### Step 2: Verification

Legal KYC guidelines require client verification to combat financial scams and identity heists.

You are directed to upload copies of your passport or driver’s license and the latest utility bill or bank statement to confirm your identity and address by the Trading 212 document verification team.

### Step 3: Deposit Funds

To deposit funds, click on the account menu at the base of the mobile trading app, choose Deposit Funds, and select your payment mode: bank transfer, credit/debit card, or e-payment. Then select the amount based on your payment mode.

### Step 4: Start Trading Financial Instruments

You can purchase and trade assets with ease of the button on both the web and mobile trading applications.



Trading 212 - A Step-by-Step Guide

Ready for some [Chainlink](https://chain.link/) news? Let's start by explaining what it is.

[Chainlink](/coins/link), then, is a decentralised oracle network intended to function as middleware between smart contracts on innovative contracting platforms and external databases, authorizing smart contracts to safely access off-chain data feeds.

## Chainlink History

Developed in September 2017, the Chainlink protocol was officially launched on mainnet in May 2019. The crypto coin strives to solve the oracle problem, an inherent restriction of blockchain networks that controls them from linking to external databases that exist off-chain. 

Chainlink delivers a comprehensive range of decentralised services via a network of autonomous oracle node operators to smart contracts, including:

•	Price Feeds - financial market data used to control a large portion of the DeFi economy, 
•	Verifiable Randomness - allowing the creation of dynamic NFTs and unbiased on-chain gaming applications,
•	Proof of Reserve- supplying proof of off-chain collateral that supports stable coins and cross-chain tokens,
•	Keeper Network- transaction automation bots that deliver independent DevOps services.

The newly published Chainlink 2.0 whitepaper also widens the abilities of Decentralised Oracle Networks (DONs). It explains how the Chainlink network matures to deliver tamper-proof data and secure off-chain computation. Chainlink oracle networks allow the creation of highly scalable and privacy-preserving hybrid smart contracts that connect on-chain and off-chain infrastructure.

The latest scalability upgrade of the Chainlink network, Off-Chain reporting, reduced oracle updates' gas prices by 90%, representing the first move towards attaining the plans mentioned in the whitepaper.

## Chainlink Technology
 
The decentralised oracle network Chainlink allows smart contracts to safely interact with real-world data and services beyond the blockchain networks. Like blockchain, Chainlink is not a monolithic network; rather, it is an infrastructure and framework for creating blockchain-agnostic oracle networks that extend the capacities of blockchains and layer-2 protocols.

Chainlink oracle network comprises multiple autonomous oracle nodes that assemble data from various autonomous data deliverers, aggregate it into a single data point, and supply it on-chain to be consumed by smart contracts. Chainlink's adaptable architecture allows for highly configurable oracle networks that can be composed of any preference of data providers and node operators that use distinct network parameters such as update frequency, fee payment amounts, and more.

Chainlink nodes are used by experienced DevOps infrastructure providers, top-notch companies, and professional data providers who deliver smart contracts with access to cryptographically signed data for further security assurances. Because of its adaptable infrastructure, Chainlink can deliver any data or computation to any smart contract application functioning on any blockchain network.

## Chainlink News

Chainlink (LINK) is currently selling at $15.38 in its USD rate. LINK has a complete market cap of $7,181,227,454 with the 24-hour bartering volume of $423,830,966.00. This data makes Chainlink (LINK) rank 23 in the crypto coin market.

In 2022 forecasts, the LINK price is predicted to cross an average price level of $20.58. Chainlink's anticipated minimum price value by the end of the present year should be $19.99. Moreover, LINK can attain the highest price level of $22.56.
 



Chainlink News, History, and Technology

Founded in 2000, LimeWire was a peer-to-peer (P2P) file-sharing program that enabled its customers to download and upload files through their laptop/computer desktop software.

It evolved to become one of the most recognized file-sharing programs worldwide. The software was downloaded on 18% of all active desktops. The software was operational on systems that had Windows, macOS, Solaris, or Linux installed.

## How was LimeWire Used?

LimeWire was based on Gnutella, a network protocol enabling individual machines to function with each other. Using the software, users were allowed to download and upload a diverse number of file formats, comprising MP3 (for music), AVI/MPEG (video), JPG (images), and more.

Initially, the end-user had to install the software through its website or any third-party website (for example, CNET) to operate LimeWire. Then the user could proceed and open the file that launches the Installer Wizard. After installing the software, the user had to choose the local folder where they wanted to save the LimeWire files. Finally, the software would ask for user permission to bypass any firewall software.

Once the software is completely downloaded and launched on the desktop, users can download any file they need for their computer.

LimeWire was operational in its free version. If users want to boost download speeds and search results, and access tech support, they could upgrade to LimeWire Pro for an annual fee of $21.95. 

LimeWire was eventually closed down in October 2010 after a long-lasting legal battle with the Recording Industry Association of America (RIA+A).

## LimeWire - May Relaunch

The peer-to-peer file-sharing software LimeWire is relaunching as a music-centered [NFT ](/news/category/nft-news) marketplace.

The LimeWire website was taken over by Austrian brothers Paul and Julian Zehetmayr. They plan to enter the market for digital collectibles with an emphasis on entertainment content, music, and art.

With the relaunch of the renowned platform, followers and collectors will be able to purchase and barter items, for example, pre-release music, limited editions, demos, exclusive live performances, album artwork, and digital merchandise. The relaunched platform will also reportedly hit up to payment alternatives for NFTs, which are generally restricted to cryptocurrency, to authorize payment by credit cards.

The new platform, LimeWire GmbH, will reportedly present musicians with the opportunity to increase their revenue from their music than they would make on other mediums such as Spotify or Apple Music.

In May 2022, the launch is assigned to go forth with 10 recognized musicians supposedly already involved (they remain unnamed). After big names like H.E.R. and Wu-Tang Clan, members of the administration teams will also be entering the startup's boards as counselors this year.

It will be intriguing to witness how the upcoming version of LimeWire fares.

You can sign up for the upcoming LimeWire marketplace waitlist [here](https://limewire.com/waitlist).


LimeWire Could Return with NFT Focus 

## What Is Polygon (MATIC)?

Before we look at the [MATIC](/news/article/polygon-crypto) price prediction, let's examine the system.

Matic Network, launched in October 2017 and rebranded to Polygon in February 2021, was co-founded by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, two professional blockchain creators and a business counselor. It is the first systematised, manageable platform for Ethereum scaling and infrastructure expansion. Polygon SDK, a modular, adjustable framework, is the main feature that sustains creating various kinds of applications.

Polygon successfully alters Ethereum into a proficient multi-chain system (Internet of Blockchains). This multi-chain blockchain design is similar to other ones such as Polkadot, Cosmos, and Avalanche, with the benefits of Ethereum's security, rich environment, and vulnerability.

Using the Polygon, developers can build promising rollup chains, ZK rollup chains, stand-alone chains, or any other infra needed.

The $MATIC token will persist and play an increasingly significant role in encouraging governance and securing the system.

Polygon, formerly known as Matic Network, is a Layer 2 scaling solution supported by Binance and Coinbase platforms. The project aims to promote the massive acquisition of cryptocurrencies by fixing scalability problems on multiple blockchains.

Polygon integrates the proof-of-stake blockchain architecture and the Plasma Framework. The framework operated by Polygon, as stated by the co-founder of Ethereum, Vitalik Buterin, authorizes the manageable implementation of scalable and independent intelligent contracts.

With Polygon, new components are being created around the current, proven technology to extend the capability to cater to the various requirements of the developer ecosystem. Polygon will persist in developing the core technology to rise to a more extensive ecosystem.

The Plasma framework allows Polygon to accommodate an endless number of decentralized apps on their infrastructure without undergoing the typical disadvantages of proof-of-work blockchains. So far, Polygon has drawn more than 50 DApps to its PoS-guarded Ethereum sidechain.

The native token of Polygon, MATIC, is an ERC-20 token operating on the Ethereum blockchain. The token is used for Polygon payment services and as a settlement coin between users who work within the Polygon ecosystem. Trading fees on the Polygon sidechains can also be paid with these tokens.

## Price Prediction

Polygon (MATIC) has been running down by 3.71% over the previous seven days. The price dropped by 1.78% over the last 24 hours. In just one hour, the price has gone down by 0.86%. The current price per MATIC is $1.6384. Polygon is running 43.89% down from the all-time high of $2.92. The current circulating reserve of the MATIC coins is 7,758,492,080.62.

## Highlights of Polygon(MATIC)

•	Polygon raised about $450 million via a private deal of its native MATIC token in a funding round conducted by Sequoia Capital India with participation from SoftBank Vision Fund 2, Galaxy Digital, Galaxy Interactive, Tiger Global, Republic Capital, and renowned investors like Alan Howard (co-founder, Brevan Howard) and Kevin O'Leary (Mr. Wonderful from ABC's Shark Tank).

•	Gamma is going live on Polygon. It is an operational liquidity administration platform for Uniswap v3, delivering non-custodial, automated, concentrated liquidity management services.

•	SynFutures has evolved as the most significant derivatives-based decentralized exchange (DEX) on the Polygon network, with a moderate monthly market volume closing of $1 billion.

•	Stader Labs' liquid staking solution is advancing soon to Polygon. This will allow MATIC coin holders to open liquidity and leverage their funds in one of 7,000 Polygon-based GameFi and DeFi apps — all while staying staked!
 



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