Cody McGrath 
Terra (LUNA) suffered a significant drop in price which saw the stablecoin falling from the 10th spot to 43rd on the list of top cryptocurrencies.
Despite founder Do Kwon’s proposal to fix the UST peg, the Terra (LUNA) price has dropped to an all-time low of $2.70.
The token has dropped 91 percent in the last 24 hours, and losses show no signs of abating. LUNA’s price drop dropped it from the top-10 cryptos to 43rd place.
Do Kwon’s proposal came after LUNA Foundation Guard (LFG), which oversees the UST stablecoin, appeared to have largely failed. The LFG had tried to raise more than $1 billion from investors.
Terra (LUNA) Prices Fall Below $5
On Binance, LUNA spot prices have reached a low of $2.70. Meanwhile, the LUNA perpetual contract rate was in the red, and the 24-hour transaction volume had surpassed $25 billion. Anchor Protocol, Terra’s most important DeFi protocol, has seen its total value locked fall nearly 90% in the last week, to around $2 billion.
According to some reports, LFG’s proposal to raise more than $1 billion in capital from Jump Crypto, Celsius, Jane Street, and Almeda fell through. The LFG sought to raise capital to balance the Terra-UST relationship. LUNA was supposed to be purchased at a 50% discount with a one-year lockup period.
Meanwhile, South Korean exchanges such as Upbit and Bithumb have issued investment warnings due to the large price fluctuations of LUNA.
Following the failure of the funding, Do Kwon stated in a tweet that the only way forward is to absorb the stablecoin supply that wishes to exit before UST can begin to repeat.
“We endorse the community proposal 1164 to Increase base pool from 50M to 100M SDR*) Decrease PoolRecoveryBlock from 36 to 18 This will increase minting capacity from $293M to ~$1200M.”
The Terra (LUNA) price may fall as Do Kwon’s and the LFG’s proposals to support the Terra economy and UST’s peg to the US dollar have failed.