One of the biggest stories in the world of cryptocurrency this week has been the fall of a stablecoin and a coin associated with it. Here’s a look at how an investment in the cryptocurrency has fared in 2022.
What Happened: The cryptocurrency market is crashing tand many of the largest coins haven’t been able to escape the carnage of a potential crypto winter.
One of the biggest decliners is Terra (CRYPTO: LUNA), a cryptocurrency created in 2018 by Daniel Shin and Do Kwon.
Terra is a decentralized payment system used for transferring stablecoins, including TerraUSD (CRYPTO: UST), a stablecoin developed by the Terra team.
Valuation for Terra has been wiped to nearly nothing after formerly ranking as one of the top 10 cryptocurrencies in the world by valuation.
Here’s a look at how Terra has performed in 2022.
Related Link: Is Terra (LUNA) Dead?
Investing $1,000 In Terra: Over the last year, Terra has traded between $0.00001675 and $119.18.
Terra started the year trading at $91.51 and the cryptocurrency hit its all-time high of $119.18 in April.
Over the last week, the coin has collapsed with the fall of the TerraUSD stablecoin taking the coin associated with it down.
A $1,000 investment in Terra could have purchased 10.9278 LUNA on Jan. 1, 2022. The $1,000 investment would be worth $0.001157 today, based on the current price of $0.0001059 for the coin.
An investor would have less than a penny in value from the $1,000 investment.
The hypothetical investment shows that investments in cryptocurrency and other items always come with risk and investors should know their risk appetites with the potential to lose a significant amount of value.