Watch Out for Avalanche: 57percent Plunge in May After Terra LUNA Crash
Categories: Crypto News US
Avalanche posts double-digit declines on Thursday, after losing 18% for the week. It is down 57% in May."The AVAX price remains trapped within a trading range that looks like a bearish pennant structure," reports Cointelegraph. The most likely reason for this drop remains the continuing uncertainty surrounding the Terra (LUNA) and TerraUSD (UST) projects. AVAX is connected to those two projects run by Luna Foundation Guard (LFG) because LFG had purchased nearly 2 million AVAX coins worth $100 million to hold in reserve as back-up assets, explains The Ascent.Emin Gun Sirer, CEO of Avalanche, has acknowledged that his company Ava Labs lost $60 million due to the collapse of LUNA/UST.However, he says he supports the work done by the Luna Foundation and believes that the AVAX reserve is likely to have a stabilising effect