The Terra blockchain was halted for the second time in 12 hours on Friday, as developers seek more time to come up with a recovery plan.
The move comes as LUNA- its native token- crashed to a value of below 1 cent, while the UST stablecoin’s dollar “peg” now stands at less than $0.2.
Terra had late on Thursday halted the blockchain, for about two hours. The developers said it was in order to prevent governance attacks, considering that LUNA prices have crashed nearly 100%. This drop in prices makes the blockchain extremely vulnerable to price manipulation.
Terra halted for more time to reconstitute
With this halt, Terra’s developers said in a tweet validators have halted the network to buy more time to reconstitute it. The blockchain was officially halted at block 7607789, at around 10:20 PM ET.
As of press time, the network is down for about three hours, with no further updates from the developers. Reconstitution measures could likely include improving network capabilities to handle higher transaction volumes, and may also see further efforts to support the UST peg.
Trending Stories
Terra’s first shutdown sent ripples across the market, and exposed other platforms to price manipulation through LUNA swaps.
DeFi platform Venus Protocol said due to the pause, and a corresponding price feed pause by Chainlink, users were able to sell LUNA at over 100 times its market price on the platform. A separate report said this cost the protocol about $11.2 million.
While Terra has outlined several steps to recover value, LUNA and UST prices have continued their death spiral. The project intends to mint more LUNA and burn it to support UST prices.
Where will the project go now?
Mass withdrawals on the Terra blockchain have almost completely drained it of value, making any attempts at recovering highly futile.
There are also rumors that founder Do Kwon, along with the project’s backers could face strict regulatory action, although there is no official word on the matter.
Amid the market chaos, top crypto exchange Binance has delisted LUNA and UST, given that their volatility was also disrupting the exchange’s channels.
- Ethereum Shorts Building Up, ETH Exchange Supply Rises
- Bitcoin (BTC) Hits 3-Day Death Cross, More Bloodbath Coming?
- Crypto Expert PlanB Reveals New Bitcoin (BTC) Bull Run
- Solana (SOL) NFT Trades Moon Amid Crypto Crash
- LUNA Founder Faces Community Backlash Over LUNA Revival Plan; Here’s Why
- Breaking: Do Kwon Releases Another LUNA Revival Plan
- Just-In: Grayscale Adds Five New Tokens To Its Investment Products
- Another Stablecoin Follows LUNA $UST, Crashes Within Hours
- PlanB: Bitcoin (BTC) Is Creating A Bottom For The Next Bull Market
- Shiba Inu Holders Increase Amid Market Crash, But There’s A Catch
- Ethereum Price Analysis: ETH Price Erases Recovery Gains Towards $2,000
- Decentraland Price Analysis: MANA Price Sinks 10%; Are You Still Holding?
- Bitcoin Price Analysis: BTC Price Under Bear’s Spell; Is $26,000 On Cards Again?
- ETH Price Analysis: Consolidation Range Soon To Launch ETH Above $2250
- Bitcoin Price Analysis: Triangle Breakout Sets BTC Rally To $32000 Mark
- LUNA Price Analysis: Opportunity to Buy Cheap or A Bull Trap?
- Decentraland Price Analysis: MANA Price Prepares For 60% Gains; Are You Buying?
- SOL Price Analysis: Is $60.0 Around The Corner On The 4-hour Chart?
- DOGE Price Analysis: Wedge Pattern Retest Phase Warns $0.08 Fallout
- Ripple Price Analysis: XRP Price Remains Pressured below $0.50; Is Selling A Good Choice?
