This major crypto token dropped 60% in 24 hours. Here's what you should do

economictimes.indiatimes.com:

Interestingly, this time it's not a tiny token or a one time wonder, but a constituent among the top-10 crypto tokens, if we exclude the dollar-pegged stablecoins. Here, we are talking about Terra (LUNA). The native token of Terra blockchain named 'LUNA' tumbled to $24.14 from $61.99, registering a massive drop of 60 per cent within a day. The token is trading about 80 per cent below its peak close to $118, scaled last month.

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Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. It combines the price stability and wide adoption of fiat currencies with Bitcoin and offers fast and affordable settlements. Its stablecoin, TerraUSD (UST), lost its dollar peg for the second time in three days, falling to as low as $0.65. As UST 'depegged' price of LUNA, its sister token, has taken a big hit. Ganesh Kompella, Venture Partner, Tykhe Block Ventures, said the rise of LUNA and UST has been phenomenal, and it had a treasury reserve consisting of Bitcoin, which does seem a little dicey. It's only a matter of time before it fails, he added. «With the peg breaking, we lost a peak of $6 billion of perceived value in stables from the peg breaking, showing massive uncertainty in LUNA's approach. Ideally, market makers would step in and correct the peg,» he added. The fall was so steep that the market cap of Terra dropped below the market cap of its stable coin UST, according to the data from Coinmarketcap. Even it dropped down to the 14th spot among