- Terra's Korean community of thousands of traders, which started in 2019 has been officially shut down.
- Do Kwon and Luna Foundation Council's efforts to recover Terraform Lab tokens LUNA and UST have failed.
- Luna Foundation Guard reserves have plummeted to $60.94 million in Avalanche tokens and $10.31 million in UST.
The Terra blockchain has been halted several times since May 11 in light of the de-pegging of TerraUSD (UST) and instability in liquidity across exchanges. LUNA crashed to near zero, despite Do Kwon's recovery plan and massive burn of UST.
Terra's LUNA on the path to zero as blockchain halts
LUNA, the sister token of the controversial stablecoin TerraUSD (UST), crashed to near zero as the Terra blockchain was halted several times since May 11, 2022. Several exchanges and platforms like Binance Futures, Bybit, and eToro have delisted LUNA in light of the instability and unstable liquidity.
Terra's unofficial Korean community, which first started in 2019 and comprised thousands of investors, has been shut down. The admin's final words before shutting the community were:
This is really over... Validators are leaving too... He's going to sell the house and run
Do Kwon, the CEO of Terraform Labs, has been inactive on Twitter since May 11, 2022. Kwon has disappeared after revealing a detailed step-by-step plan to burn UST at 4x the current rate and reduce its supply to restabilize its peg.
The Luna Foundation Guard (LFG) council's recovery of Terraform lab's LUNA and UST has nearly failed as reserves plummet to $71.26 million, and the two tokens fail to recover.
The current reserves of the foundation consist of $60.94 million in Avalanche tokens and $10.32 million in UST.
Luna Foundation Guard (LFG) Reserves
Interestingly, GAM Holding, an independent asset management firm based in Switzerland, has offered to rescue Terra's UST. The firm is currently in talks with the management of Terra and has offered between $2 billion and $3 billion to absorb the excess supply of UST in the current market-wide sell-off.
The asset manager's move could reestablish UST's peg to $1. Peter Sanderson, the CEO of GAM, says,
Our interest in supporting UST reflects our interest in supporting a vibrant, innovative, and resilient crypto market. We firmly believe in Terra's ecosystem. Just as importantly, we believe in UST's algorithmic approach to valuation…[]...We see opportunity in UST's recent activity and continue to see promise in Terra's broader strategy.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.