Terra Switched Off Indefinitely, LUNA & UST Barely Alive -Breaking
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Terra Switched Off Indefinitely, LUNA & UST Barely AliveTerra has temporarily halted block production as of Thursday night, at 9:58 PM ET. managed to restart the blockchain network at 13:45 EST on Thursday afternoon, but the revival didn’t last.
Terra Blockchain has been officially stopped at block 7607789. Terra Validators are currently trying to figure out a way to restart it. Stay tuned for more updates.
— Terra (UST) Powered by LUNA (@terra_money) May 13, 2022
Terra Still Fearful of Hacker Attacks
Terra attempted to reboot the network in an effort to prevent possible governance attacks. An attack on the network’s governance is more common when it is insecure. Having in mind that Terra’s native token LUNA dropped from an ATH of $119.18 all the way to $0.00003365 in just a month, for hackers it’s a perfect opportunity to perform a hostile takeover. Hackers can have the majority of votes in an ecosystem if they are the only ones who manage to hack into it and get at least half of its governance tokens.
UST’s Temporary Comeback and Future Prospects
On the other hand there’s UST, the most unstable stablecoin in the world, which is trading at the price of $0.1777 at the time of this writing. According to CoinGecko, TerraUSD (UST), has had a difficult time recovering its peg but was able to recover around 205% of the $0.044 all-time low just seven hours ago. This comes a day after Terra proposed a rescue plan for UST, as it is pegged to the dollar by LUNA’s maintenance and regulation. The company attempted to increase LUNA’s production in order to stabilize UST.
Terra’s most recent attempt to save face managed to push UST back to $0.84 yesterday, but the success was shortlived. In addition, Terra’s leader Do Kwon presented a recovery plan for UST, but is yet to comment on today’s situation.
Cryptocurrency luna crashes to $0 as UST falls further from dollar peg; bitcoin rebounds 8% https://t.co/cCNhecOzQK
— CNBC International (@CNBCi) May 13, 2022
Flipside
- Previously, rumors surfaced that the collapse started when BlackRock (NYSE:) & Citadel Securities, two massive asset managers in the crypto market have manipulated Terra’s leader Do Kwon to drop the price of BTC in an exchange, which resulted in the two mentioned hedge funds dumping their UST and . LUNA (NYSE:) and UST plunged dramatically in recent market crashes due to this alleged action.
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