Terraform Labs has shut down the blockchain behind LUNA and the TerraUSD for the second time in a short time. The company said in a tweet that validators, the entities responsible for verifying transactions on the blockchain, are doing this to overlay a plan to reconstruct the Terra network.
Terra .’s Bizarre Collapse
Terra’s algorithmic stablecoin, known as TerraUSD (UST), was one of the largest stablecoins in the world before losing its intended 1-1 peg to the dollar. Terra’s stablecoin and also the Luna token started crashing at that time. This incident resulted in deep losses.
Terra’s ‘so-called’ stablecoin is worth just $0.18 at the time of writing. With the Luna token, things seem to end much worse. 1 LUNA is only worth $0.00005. This while the price of the same token was still around $120 just over a month ago.
The largest crypto exchange Binance also announced this morning that it has removed all LUNA trading pairs from its platform. The exchange warned about this before, but today the token has been officially removed.