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The depreciation of the coins of the Cryptocurrency Project Terra – LUNA and UST, continues to negatively affect the digital asset market. So, over the past few days, against the background of panic discussions of the fall of the above coins, several more cryptocurrencies related to the activities of Terra have fallen in price. The most affected token of the Avalanche project – AVAX. In just three days, the asset fell by 15% in price, from $ 35 to $ 28.8.
The story originates from the first seconds of the fall of Terra and the attempts of the project management to prevent the global collapse of the blockchain. As you know, Terra has many other digital assets available, which the company constantly bought to provide support for its own cryptocurrencies, especially the “reference” UST token. According to reports, the bulk of Terra’s reserves consisted of BTC and BNB, but recently it turned out that the project also owns a considerable number of AVAX coins.
When the blockchain faced problems, the developers decided to sell some crypto reserves in order to somehow keep their coins afloat. Among the currencies that were put up for sale were both BTC and BNB. The actions taken could not help Terra much, but this was enough to pull “to the bottom” other cryptocurrencies caught in cooperation with the project. Market experts immediately suggested that the next in line are AVAX tokens. By the way, Terra has almost 2 million of them. Amid widespread rumors of a massive AVAX sale, South Korean media reported on Terra’s tax evasion. This news has played a key role in AVAX’s short-term future.
On May 16, the digital asset AVAX was trading above $35 on most exchanges. After the appearance of various rumors on the Web and the report of Terra’s problems with the “tax law” of South Korea, AVAX tokens gradually but steadily began to fall in price. As of yesterday, May 19, the value of the Avalanche project cryptocurrency reached $ 28.5.
According to the analysis conducted by analysts of the publication Cointelegraph, the decline in the cost of AVAX will continue to grow exponentially. Now, experts say, the AVAX cryptocurrency has entered the stage of the so-called “bearish float”, which is why the price of the token until the end of May may fall to $ 17.
Earlier, we talked in more detail about Terra’s violation of the tax legislation of South Korea and the fine to which the co-founder of the project Do Kwon was obliged to pay.
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