According to the official Twitter announcement, Terra Blockchain has been discontinued. The decision was made to thwart management attacks following the LUNA price crash.
Terra Blockchain was stopped to prevent management attacks
As we quoted as Kriptokoin.com, the LUNA price lost 99% in 72 hours and returned billions of dollars within days. Despite all the interventions, the network’s stablecoin UST is currently trading at $0.3837 and additional LUNA issuances are underway for support.
In the official announcement made by Terra, it was announced that the LUNA price was too low to prevent administrative attacks:
Terra Blockchain was officially stopped at block height 7603700. Terra validators have decided to halt Terra Blockchain to prevent governance attacks, following severe LUNA inflation and dramatically reduced attack cost.
LUNA was removed from the market in less than a week
According to the data, LUNA traders have suffered some of their biggest weekly losses in recent months as prices dropped 99.7% in one week. The LUNA price has dropped 96% in the last 24 hours alone to 349th place by market cap. It fell 99.9% from around $60 earlier this week and a record $120 in mid-April. One of the biggest altcoins in the market is now on the agenda with delist news due to high volatility.
The network’s USD-pegged stablecoin TerraUSD (UST) lost its stable price last weekend. It fell as low as $0.27 on Monday, failed to recover despite all the support. Terra’s collapse is largely due to the destabilization of the UST’s peg to the dollar, resulting in the UST’s en masse conversion to LUNA.
The altcoin price is now lower than it was during the ICO, meaning early investors are now at a loss if they hold their positions. Amid a wider stablecoin panic, even Tether began to lose price stability earlier today, though not to the same degree as UST. Bitcoin price is approaching the silent $30,000 as the market looms over what will happen to Terra and UST.
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