Collapse of Terra
The price of Terra’s LUNA coin has collapsed to practically zero dollars. Currently it stands at $0.000369. This while the Terra price was just over a month ago around $120. The UST stablecoin is also worth almost nothing. 1 UST token is trading at USD 0.21 at the time of writing. All hope that the price would eventually recover to the coveted $1 level has been lost.
In addition, the Terra network has been shut down for the second time. Validators are working on a plan to get it up and running again, an announcement said on Twitter.
Terra founder Do Kwon released a network recovery plan today. With this, Do Kwon hopes to compensate token holders for the horrific losses they have suffered in recent days.
Do Kwon suggested that the blockchain’s validators reset the network and reduce the maximum number of tokens to 1 billion. These tokens are then distributed among LUNA and UST investors and a community pool to fund future development.
Do Kwon is less optimistic about the TerraUSD stablecoin. According to him, it will probably never be possible to bring the UST token back to $1.