Amidst the Recovery Plan, Will Ever Terra(LUNA) Price Be Back on Track?
Terra’s UST losing its peg has created huge turbulence within the crypto space which destabilized many of the assets. However, a minor recovery with the LUNA or UST price was mistaken as a trend reversal. And many investors again jumped into the burning well. And hence both of the assets were suspended from trading on many popular exchanges.
Now when the blockchain has also been halted, while new measures have been thought of, should it be a ray of hope for the investors?
As earlier covered by Coinpedia, Terraform Labs is in talks with a Swiss Asset manager GAM to uplift the UST’s position, a new update stated that the UST may be completely collateralized in the future.
The community is deciding on a new @terra_money, between restoring a snapshot prior to attack, removing TFL, fully collateralizing UST and drafting & deliberating new mechanisms for $LUNA.We must salvage the remaining value in the ecosystem & community and rebuild the right way— will (@stablechen) May 13, 2022
And moreover, the founder, Do-Kwon has also place a recovery plan which includes enlarging base pool, burning UST and staking LUNA also made some rounds. However, the delisting of both the assets from various exchanges may hinder the progress of the plan largely. Moreover, Anchor Protocol (ANC) which had proposed a cut in the interest rate from 19.5% to 4% also received significant backlash.
Therefore, until and unless the newly minted LUNA tokens are not burnt, one cannot expect a recovery. The CEO of Binance, which took an early step to halt the LUNA Futures, later delisted explained in a series of tweet on the action.
1. At #Binance we prioritize user protection. We made the decision to suspend LUNA and UST trading. Here's why. A thread — CZ Binance (@cz_binance) May 13, 2022
As per the founder, some investors were unaware of the newly minted LUNA and hence with a slight increase started buying LUNA again. As expected, LUNA price continued to crash which compelled the platform to stop the trading. CZ also accused the Terraform labs of weakly handling the current situation by establishing contact with the exchanges.
Therefore, in such circumstances, the traders and investors who already hold LUNA or UST tokens have no option left to wait and watch the future developments of the platform.Source