Investors, already flighty in the current gloomy market, flocked to sell their UST once the stablecoin couldn't retain its peg. It bounced between 30 cents and 50 cents in the week following the initial depeg, but has now fallen to a steady low of under 20 cents. Its market cap, which was around $18 billion in early May, now stands at $2 billion.
It's worse for luna holders. The value of luna tokens has almost completely disappeared: After reaching a high of just under $120 in April, luna's current price is less than a fiftieth of a penny.
"Terra could have grown to be 10 times as large" before such a crash, he said to CNET. "Better that we prick that bubble of unsustainable protocols sooner than later."
Why does it matter?
This matters for three reasons.
First, over $15 billion in crypto value has been wiped out through luna and UST alone. There have been anecdotal reports of self-harm by those who had most of their savings staked in UST -- though these can't be confirmed, it's clear that a lot of people lost a lot of money in the collapse. The damage isn't contained to terra's ecosystem though, as Fortis Digital's Boroughs notes. Many who were exposed to luna and UST would have sold off big parts of their crypto portfolio to recoup some of the damage, pulling the entire market down.
Second, it raises questions about other stablecoins. Again, UST was unusual in that it was an algorithmic stablecoin, unlike tether and USDC. But the stability of those coins has always been somewhat in doubt: For instance New York's attorney general last year about how much it actually held in dollar reserves.
The remaining reserves will be used to "compensate remaining users of UST, smallest holders first."
Meanwhile, Terraform Labs founder and CEO Do Kwon has controversial plan to revive luna.
1/ I've spent the last few days on the phone calling Terra community members - builders, community members, employees, friends and family, that have been devastated by UST depegging.
I am heartbroken about the pain my invention has brought on all of you. — Do Kwon (@stablekwon)
On Monday, [url=]Kwon proposed a plan to "fork" the terra blockchain. In essence, this means the creation of a new blockchain that's modeled on the previous one, with some key changes. The new blockchain would be created alongside a billion luna tokens, which would be distributed among current luna and UST holders, as well as fund development of new terra apps.
Perhaps conceding the foundational problem of tethering luna to UST, Kwon proposed removing UST, previously the main selling point of the blockchain, from the terra ecosystem. "Terra's app ecosystem contains hundreds of developers working on everything from DeFi to fungible labor markets, state-of-the-art infrastructure and community experience," he said, proposing this should be preserved at the expense of terraUSD.
Many, [url=]including Zhao[/url], are skeptical that the plan will work.
Уважаемый посетитель, Вы зашли на сайт kopirki.net как незарегистрированный пользователь. Мы рекомендуем Вам зарегистрироваться либо войти на сайт под своим именем.