Luna Foundation Guard close to announcing recovery plan for TerraLuna, UST


Do Kwon has announced a recovery plan in the works for UST and, therefore, the Terra ecosystem. UST has lost its peg from the dollar, and its native token LUNA is down is down 90%, currently trading at a 12-month low of $4.69.

The Terraform Labs CEO also apologized for being “quiet,” citing a need for “razor focus to deliver, thanks everyone for the support.”

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Since the tweet, UST dropped to 22 cents on the dollar vs. USDT on Binance. The recovery plan was announced when UST had “only” dropped to a low of $0.64. He reiterated the program several hours later, stating that they were “getting close” and asked the community to “stay strong.”

Amidst the wait for a recovery plan, many users liquidated positions on Anchor Protocol, which led to LUNA losing roughly 90% of its value over the past 24-hours. The call to “stay strong” appears to be falling on deaf ears as the community cries out for help.

Some of the replies are listed below:

After recent events, how Luna Foundation Guard will attempt to recover the Terra ecosystem is up for debate.

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Given the amount of TVL lost from Anchor Protocol and the emptying of the LFG Bitcoin reserves, it is hard to imagine a way back for what was, until this week, one of the most significant crypto projects in the world.

 Perfect timing for a stablecoin report

The timing of the incident appears to tie in with a US treasury report on stablecoins coincidently. The announcement came amid the first of the significant sell-offs of UST on Anchor Protocol over the weekend. Rumors are circulating that Citadel is behind the initial volatility as a few wallets dumped hundreds of millions worth of UST.

 

Posted In: People, Stablecoins




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