Prominent cryptocurrency trader Peter Brandt has made new statements for Terra (LUNA), one of the largest cryptocurrency projects. Here are the trader’s comments…
Brandt comments on the LUNA collapse
Brandt claims that the demise of Terra (LUNA) was initiated by the formation of the classic head and shoulders chart pattern. An easy-to-detect formation occurs when a high (shoulder) is followed by a higher price peak (head) followed by another lower low. While traders often tend to overlook the importance of such classic patterns, Brandt believes the predictive power was on display during the LUNA crash.
Just two months ago, $42 billion The token, which has a value of one, dropped to zero last week. As we reported as Kriptokoin.com, the UST stablecoin working with LUNA lost the dollar stable and caused users to experience deep losses. After allegedly injecting billions of dollars worth of Bitcoin from its reserve to fix UST back to the dollar, UST continued to decline after a short-term recovery. Yesterday, it fell below $0.01.
Terra events continue
Terra co-founder Do Kwon has released a new recovery plan that proposes to fork the chain to start everything from scratch. The plan does not include the UST stablecoin. Do Kwon argues that Terra, despite being the main selling point of the project, is larger than the failing stablecoin. Kwon proposed splitting Terra into a new chain that would cut off the failed UST product entirely and instead focus on decentralized finance (DeFi) applications built on Terra.
The existing chain will continue as Terra “Classic”, while LUNA holders on the “Classic” chain will receive an airdrop as the new chain’s token under the plan. Kwon said that although it is still a proposal, the new network could launch on May 27 if the majority of network validators and the community approve the plan. Emotions are mixed for the proposal among the crypto community. Meanwhile, financial authorities around the world are focusing on stablecoins after the Terra disaster.
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