Stablecoin TerraUSD Went Down Sharply

The price of Stablecoin TerraUSD fell sharply on Monday as cryptocurrency creators announced a plan to attempt to rescue the project. According to CoinMarketCap, the price of TerraUSD, created to hold the value worth $1, fell 36% to 11 cents. Trading volumes over the last 24 hours have been less than $400 million, compared to the previous week's trading volume of over $5 billion.

TerraUSD experienced a catastrophic collapse last week as market sales spread, well below the $1 level. The collapse put pressure on the prices of Bitcoin and other cryptocurrencies and wiped out the value of TerraUSD's sister token, Luna. As a so-called algorithm stablecoin, TerraUSD used Luna to keep its value at $1.

Luna was trading at $ 0.0002 on Monday, up 15%, according to CoinMarketCap. The total market value was about $1.4 billion as of Monday. Earlier this year, Luna peaked at $41 billion.

Overall, the group said it still has about $106 million in assets to use to indemnify the remaining holders of TerraUSD, starting with the most minor holder. There were no details on how this compensation will work.

Securities and Exchange Commission Chairman Gary Gensler warned investors on Monday that the crypto market is a "very speculative asset class" and lacks the disclosure provided by issuers of stocks and debt.