As Luna holders watch the token slide, many won’t be able to cash out for weeks
After the stablecoin TerraUSD (UST) lost its peg to the US dollar this week, many investors in the related token Luna (LUNA) have been left unable to sell. Stuck on the sidelines are those who own Luna tokens and have them staked. These holders are watching the value of their tokens sink and aren’t able to do anything about it. According to Terra Analytics, around 152 million LUNA is being staked on the network — excluding liquid staking through Lido, where tokens aren’t as tied up. That represents 30% of the circulating supply of LUNA. When coins are staked, they are locked up indefinitely and the holder receives tokens as rewards. When the holder chooses to unstake them, they are able to get their tokens back after a period of time and then no longer receive rewards. Staking periods can range between different cryptocurrencies, but for Luna, it’s 21 days that you have to wait to get your tokens back. Normally this isn’t a big problem. While crypto prices are volatile, stakers typically accept this and are used to day-to-day fluctuations. If the market starts declining, worried holders can unstake their tokens and cash out within a few weeks.