What Made LUNA Spike 3,000% During the Weekend?

Vinod Dsouza
Source: Pixabay

TerraUST and LUNA went straight to $0 after its stablecoin got depegged from its 1:1 position to the USD. The massive crash wiped investors’ money in a jiffy making their portfolio worthless in the span of a day. While the Terraform Labs team announced a ‘recovery plan’, there wasn’t much the team could do to save itself from collapsing. In the midst of all the rubble, LUNA saw a mini recovery during the weekend as it spiked 3,000% in just 24-hours.

Read More: Terra UST Crash Was A Deliberate Attack By Banks & Insiders?

Why Did LUNA Spike 3,000% Despite Crashing?

LUNA started pumping during the weekend touching a phenomenal 3,000% spike in just 24-hours of trading during the weekend. The recent pump in the price for LUNA could be attributed to difficulties in shorting it, as margin trading was suspended by all major exchanges. There are no signs of exchanges relisting it again and providing margin trading is out of the question.

While ‘shorting’ drastically reduced, investors pumped LUNA in the hopes of bottom fishing the token. Nonetheless, the sudden spike in price was short-lived as investors feared a slump and pulled out their holdings after taking profits. LUNA immediately dipped to red and is now down double digits in the indices. There are no signs of it coming back to life again as its reputation in the market is down to dust.

Questions about its founder Do Kwon‘s integrity are also being doubted, as talks about his role in a previously failed stablecoin ‘Basic Cash’ are doing the rounds on social media.

Read More: Do Kwon Called Failing Companies ‘Entertainment’, Now Requires a Hail Mary

The Future of Terra LUNA

Not much is known about the future of LUNA as Do Kwon’s latest Twitter post didn’t highlight a resurrection plan. Kwon, however, asked for ‘time’ as his team was “juggling multiple tasks at the same time.”

“We are currently working on documenting the use of the LFG BTC reserves during the depegging event. Please be patient with us as our teams are juggling multiple tasks at the same time,” he tweeted. He also confirmed that he or his team members didn’t profit from the crash in whatsoever way.

“Neither I nor any institutions that I am affiliated with profit in any way from this incident. I sold no luna nor ust during the crisis,” he said.

Read More: Terra LUNA: From Top 10 Crypto to Crashing 99%, Here’s What Happened

Nonetheless, questions arise about where did Terra’s $2 billion Bitcoin reserve go and its path remains to be a mystery. You can read more here about it here for a better understanding.

At press time, Terra (LUNA) was trading at $0.00023951 and is down 24% in the day’s trade. The token is down 100.0% since the last 365-trading days and all ‘long-term’ holders bags are empty.