Terra co-founder Do Kwon tweeted on Tuesday that he is “close to announcing a recovery plan for the UST”.
He followed this up under a thread asking for community patience and assuring investors that the Luna Foundation Guard (LFG) is not trying to get out of its Bitcoin position by moving $1.4 billion in BTC and UST, instead putting the capital into the hands of a professional market maker to strengthen the algorithmic stablecoin peg.
Trouble in Paradise
So far, TerraUSD maintains its peg through an algorithm that adjusts supply and demand in a complex process that involves the use of its own balancing symbol, Luna.
Thus, the downfall of Terra for the first time in months, sparked what could be one of the most impressive sell-offs among the big cap tokens this year. This rapid decline has pushed LUNA out of the top 10 coins by market capitalization, now putting its market below $12.5 billion.
Bitcoin’s (BTC) price plunged below $45,000 Saturday, as the market chart indicates high spot trading sales volume. Takeaway points Bitcoin crashed to 42,000 Analysts say the fear of the new Omicron virus may have been responsible for the crash The crash triggered a buying spree from Bitcoin key players including...