Terra Luna (LUNA) price has turned into a crypto-currency zombie. The price action shows no heartbeat or vital signs after its sharp drop from the ripple effect of its subsidiary and stablecoin Terra. Stablecoins are attached to an asset and try to stay level with the parking space when withdrawing funds from crypto-currencies but do not want to enter monetary cash. With the breakup of the peg, questions arise and the regulation of crypto-currencies is back on the top of the agenda of central banks and authorities.

The LUNA Price is quickly forgotten

Terra Luna's price has been decimated and smashed to bits in the overflow of its stable coin Terra. The latter, Terra, is indexed to the value of the dollar and is, via an algorithm, kept at parity to park your crypto-currencies in a digitally safe space without having to transfer them at exchange rate prices to your normal daily bank account. But that's where it goes wrong, because a peg is expensive, and it could even push a small country into default, let alone a small alternative currency in the crypto-currency space.

LUNA's price dropped even below the value of a penny stock after the Terra/US dollar peg broke down, as the strength of the dollar required too many additional assets from the company behind Terra to match the dollar's appreciation. In several interviews, no comment or detail was given on what assets the company was holding and buying to match the intrinsic value. This puts the entire $180 billion altcoins industry at risk, as they are not regulated and therefore not backed by any central bank. set of parameters to move in.

In its brief existence in the alternative space, LUNA will likely contribute to crypto-currencies getting a set of guidelines and rules enforced to survive the woes and movements of global markets. An indexed currency is always tricky as it almost triggered Singapore's default a few years ago as the country tried to keep its currency at the same level against the dollar, and several other major central banks have in the past let their caps or floors lose as being unsustainable to maintain and being very costly with often a large write-off for the central bank involved. The best example is when the Swiss Central Bank dropped its floor without notice and almost made the foreign exchange market crash with some illiquid currency pairs. At the time, other central banks stepped in to provide liquidity to keep the system from collapsing, but who will step in if this happens with a stable crypto currency or coin pair?