Terra plunges 60% in 24 hours. Why the crypto's price is crashing

livemint.com:

Stablecoin Terra plunged more than 60% to $10 over the last 24 hours with the token falling over 85% in the last seven days amid the crypto slump. Terra's price has fallen more than 91% from its record high of $119.8 it had hit in April this year.

The cryptocurrency shot to prominence earlier this year when non-profit Luna Foundation Guard, an affiliate of Terraform Labs, the company behind TerraUSD, pledged to amass $10 billion worth of bitcoin to support its dollar peg. 

"Terra(LUNA) has had a whirlwind of a week with the token tumbling at an alarming rate, plummeting from a steady price of $88. The debacle began when Terra’s algorithmic based stablecoin TerraUSD(UST) , which is pegged against the dollar, fell sharply to almost $0.6. With that, Binance, one of the top global crypto exchanges, temporarily stopped the withdrawal of UST and LUNA. All this led to a cascading effect on the prices of LUNA, spiraling it out of control. The daily chart for LUNA has broken below the ascending channel pattern. An immediate support could be expected at $4," said Siddharth Menon, COO of WazirX.

On Tuesday it broke its 1:1 peg to the dollar and fell as low as 67 cents, according to price site CoinGecko, and by Tuesday afternoon TerraUSD had rebounded slightly to 91 cents.

Unlike other stablecoins that have reserves in traditional assets, TerraUSD maintains its peg through an algorithm that moderates supply and demand in a complex process involving the use of another balancing token, Luna.

Crypto assets bled nearly $800 billion in market value over the past month, mirroring a plunge in equities on fears of aggressive interest rate hikes across the globe to stave off decades-high inflation. The crypto swoon comes as tightening