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.
The Terra blockchain has officially halted at block 7607789.— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 13, 2022
Terra Validators have halted the network to come up with a plan to reconstitute it.
More updates to come.
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.
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
- 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.