Terra Switched Off Indefinitely, LUNA & UST Barely Alive

Terra managed to restart the blockchain network at 13:45 EST on Thursday afternoon, but the revival of UST and LUNA didn’t last

Terra has officially suspended block production as of 21:58 EST on Thursday, May 12th. Prior to the decision, Terra had managed to restart the blockchain network at 13:45 EST on Thursday afternoon, but the revival didn’t last.

Terra in Fear of Hacker Attacks

Terra attempted a manual restart of the network to prevent potential governance attacks, which becomes more likely as network vulnerability increases. In the wake of Terra’s native token, LUNA, dropping from an ATH of $119.18 all the way down to the bleak price of $0.00003365 within the span of a month, the current landscape presents a perfect oportunity for hackers to perform a hostile takeover. Were a single hacker to break into the ecosystem and obtain 50% of the network’s governance tokens, they would have a majority share of all votes in the ecosystem.

UST’s Temporary Comeback and Future Prospects

Meanwhile, the UST, the most unstable stablecoin in the world, is trading at a price of $0.1777 at the time of writing. TerraUSD (UST) has a long and difficult road ahead of it to regain its peg, but has so far managed to make a recovery of 205% from the all time low of $0.044 recorded 7 hours ago, according to CoinGecko. The news comes a day after Terra proposed a rescue plan for UST, which is pegged to the dollar through the maintenance and regulation of LUNA. The company has therefore attempted to increase the production of LUNA in order to stabilize the UST.

Terra’s most recent attempt to salvage the situation managed to push UST back up to $0.84 yesterday, but the success was shortlived. Terra’s founder, Do Kwon, presented a recovery plan for UST, but is yet to comment on today’s situation.

On the Flipside

  • Rumors had previously surfaced that the collapse started when BlackRock & Citadel Securities, two massive asset managers in the crypto market. conspired to manipulate Do Kwon into dropping the price of BTC on an exchange, which resulted in the two aforementioned hedge funds dumping their UST and Bitcoin. In light of the alleged move, LUNA and UST dropped dramatically from the resulting market crash.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.