Terra Switched Off Indefinitely, LUNA & UST Barely Alive
2022.05.13 13:51
Terra Switched Off Indefinitely, LUNA & UST Barely Alive
Terra has officially suspended block production at 9:58 PM EST on Thursday evening. Terra managed to restart the blockchain network at 13:45 EST on Thursday afternoon, but the revival didn’t last.
The Terra blockchain has officially halted at block 7607789.Terra Validators have halted the network to come up with a plan to reconstitute it. More updates to come.
— Terra (UST) Powered by LUNA (@terra_money) May 13, 2022
Terra Is Still in Fear of Hacker Attacks
Terra tried to restart the network to avoid possible governance attacks. A governance attack is becoming more likely when the network is vulnerable. 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. If a single hacker manages to break into the ecosystem and gets at least 50% of the networks governance tokens, the hackers are able to have majority of the votes in the ecosystem.
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. TerraUSD (UST) has a hard time regaining its peg, but managed to get back around 205% from the all time low of $0.044 just 7 hours ago, according to CoinGecko. 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
On The Flipside
- Previously, rumors surfaced that the collapse started when BlackRock (NYSE:BLK) & 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 Bitcoin. In the presence of this alleged move, LUNA and UST dropped dramatically during the recent market crash.
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