Despite the collapse of Terra (LUNA) and TerraUSD (UST), Terra CEO Do Kwon announced the recovery process and ended on a very positive note.
LUNA price approached zero
Terra LUNA price saw below 1 dollar. It reached a new daily low of 0.938 at 12:39 on the Bitfinex exchange.
One of the most popular cryptocurrencies wipes $29.5 billion from market capitalization with the biggest and fastest drop to date. It is trading at a 99% discount from the record high of $119.18 recorded a little over a month ago. The UST stablecoin managed to retrace as low as $0.5491 after falling as low as $0.30 earlier today. Many crypto investors and analysts have jokingly branded the drop as a “Kwonzi” scheme.
Meanwhile, it has announced that it has stopped trading on Coinone, one of South Korea’s “big four” crypto exchanges, due to the sudden price drop. To fix the ship, Terraform Labs founder Do Kwon supported pressing additional LUNA to eventually restore the $1 stabilizer. After hours of silence, his statement further intensified the sales…
Founder Do Kwon recommends Terra Fix
We have discussed Do Kwon’s statements made during the day in this article. Terra CEO approved a fix that includes increasing Terra’s daily minting capacity, helping UST achieve price stability. He noted that the proposal to increase printing capacity to $1.2 billion was posted on Terra’s management forum, with 56.66% of voters voting in favor (43.34% of voters abstained and no one voted against).
If the offer is accepted, it will allow UST holders to exit their positions by printing the LUNA at a faster rate than today (current mintage capacity is only $293 million). However, this means that LUNA may face even more selling pressure in the near future. The proposal drew attention to potential pressure and offered the idea that LUNA could eventually stabilize once the UST returns to $1. Read an excerpt:
Allowing more efficient UST burning and LUNA printing will put pressure on LUNA price in the short run, but it will be an effective way to bring UST back to stable value which will eventually stabilize LUNA price.
Despite the bleak outlook facing the Terra ecosystem and community, Kwon ends his announcement on a positive note:
Terra’s return to form will be a sight to behold. We are here to stay. And we will continue to make noise.
