“The Dark Days of Cryptocurrency” – An Inside Look at the Vanished Terra Token Ecosystem and Damaged Applications – Bitcoin News

After days of carnage, the two leading cryptoassets built on the Terra blockchain have plummeted to notable lows. LUNA has fallen to $0.00000100 per coin and the once stable coin terrausd (UST) has fallen to a low of $0.044 per coin. After temporarily halting and restarting the Terra blockchain, the team again halted block production at block height 7,607,789. The team restarted the chain again and disabled on-chain swap at 8:46AM ET.

Do Kwon’s ‘Funny Morning’ Unhooking Joke Becomes Terrifying Reality

Five days ago, people began to pay attention to the Terra-based stablecoin Truss (UST) Because a slight deviation from the $1 parity occurred. At the time, rumors and speculation about the failure of the Terra stablecoin began to spread like wildfire. However, Do Kwon, co-founder of Terraform Labs shrugged As a “fun morning” and said Terra’s detractors are “all poor” right now.right go on UST’s decoupling at the time was no big deal, Terra community Believe it is also.

Then the decentralized exchange (dex) Curve Finance notice There has been a significant selloff of terrausd (UST) on the trading platform. “Yesterday, someone started selling UST in bulk, so it started to decouple,” said the Curve Twitter account. “However, this met a lot of resistance, so the peg was recovered. To get enough dollars, a lot Ethereum stETH was also sold. At this point, the Terra team seems to be taking things more seriously, while the Luna Foundation Guard (LFG) explain It borrowed $1.5 billion in Bitcoin (bitcoin) and Truss (UST) Let professional market makers defend the pegs.

UST De-Pegging turned into a nightmare for Terra, Lunatics and project investors

At this point, the community was more shaken, and Anchor Protocol started seeing massive divestments. The Anchor protocol was once the third-largest decentralized finance (defi) protocol, with nearly $18 billion locked up before the chaos began.From May 5th till now, Anchor’s total value locked (TVL) has dropped from $18 billion to $410 million today. Another defi protocol exposed to Terra’s native token . Luna is a liquid staking app Lido. On May 6, Lido had over $18.6 billion, and today, Lido now has about $8.95 billion locked up.

The once stable coin terrausd (UST) is currently changing hands at $0.094 per coin after reaching a high of $0.84 the previous day. American University of Science and Technology It fell to a low of $0.044 per unit about 11 hours before this article was written. While many digital currency exchanges have shut down Terra-based wallets, some exchanges still allow UST deposits. Currently, FTX is the most active UST exchange on Friday, and the top trading pair with UST is Tether (USDT). Tether accounted for 37.78% American University of Science and Technology traded, followed by BUSD (31.59%), USD (29.83%), EUR (0.46%) and USDC (0.29%).

Terra’s native token Luna It suffered even more than UST, as it traded for well under a cent. The 24-hour price range for LUNA has been between $0.04333980 and $0.00000100 per piece.It’s not easy to sell Luna Because most exchanges do not accept deposits from Terra Chain. FTX today is the most active exchange for LUNA, and BUSD is the most active trading pair for the token, accounting for 73.64% of all LUNA swaps. BUSD/LUNA against USD (13.60%), USDT (10.32%), and bitcoin (0.89%).

Terra Blockchain temporarily shuts down again after Binance founder expresses dismay at how UST/LUNA incident was handled

Trading Platform Founders LUNA and UST After Binance Suspension Changpeng ZhaoColloquially known as CZ, expressed disappointment with the Terra team.

“I am very disappointed with how the Terra team handled (or not handled) this UST/LUNA incident,” CZ tweet on Friday. “We asked their team to restore the network, burn extra minted LUNA, and restore the UST peg. So far, we haven’t gotten any positive response, or not much at all. This is in stark contrast to Axie Infinity, The Axie Infinity team took responsibility, made plans, and proactively communicated with us. We helped.”

Thursday, Terra Team stop blockchain and apply the patch to the codebase before rebooting.After the team restarted the network, at 10:13 p.m. ET on Thursday, the team again stop block production. “Terra blockchain has officially stopped at block 7607789,” the team tweet. “Terra Validators have taken the network down to come up with plans to rebuild it.” Then at 8:46 a.m. ET on Friday, the team announced that the chain was up and running again, but with certain features disabled.

“Terra Blockchain has resumed block production,” Terra Team explain. “Validators have decided to disable on-chain swaps, the IBC channel is now closed. Users are encouraged to connect off-chain assets (e.g. bETH) to their local chain. Note: Wormhole bridges are currently unavailable.” the team tweeted said Wormhole Bridge is available at 9:09 AM ET.

Terra Community Considers Restoring Snapshot of Chain Before Attack, Every Terra Token Built on Network Suffered Huge Losses

Additionally, discussions about restarting the project have started to emerge, and Terra advocates have been talking about taking a snapshot of the chain before the attack.

“The community is deciding on a new [Terra network]between restoring the snapshot before the attack, deleting the TFL, fully staking the UST and drafting [and] Consider new mechanisms for LUNA.We must save the residual value in the ecosystem [and] community and rebuild it the right way,” Terra advocates call “Stablechen” Tell his Twitter followers. With the exception of LUNA and UST, tokens built on Terra have suffered a lot. This week, the Anchor Token (ANC) is down 93% against the USD, and the Orion currency (ORION) is down 92.4% in seven days.

and, the earth There are also tokens that represent specific fiat currencies, such as the Korean Won (KRW).Terra’s terrakrw token Down 84.4% over the past 7 days, so did Terra’s AUD token. Terra even minted the International Monetary Fund’s Special Drawing Rights (SDR) currency and synthetic equity tokens using Mirror Finance. Every token built on the Terra blockchain has been shaken up and most are worthless. Currently, about $39.17 million is locked in the app due to the closure of the website and the inability to access the portal mirror.finance.

In a note sent to Bitcoin.com News, Dan Ashmore, crypto data analyst Invezz.comexplaining that the consequences of the Terra blockchain have brought a lot of pain and sadness.

“This is a dark day for cryptocurrencies,” Ashmore said in a statement. People lost their livelihoods, hundreds of platforms collapsed and years of construction disappeared. College funds, lifetime savings, leveraged gambling—there’s a lot of pain out there. Regulators are watching, which is certainly a step backwards. Obviously, this is also a failure of decentralized, unsecured stablecoins. A huge financial experiment went out of control and took over a large part of the market as a result. be careful. “

tags in this story

anchor, Blockchain stops, Changpeng Zhao, Long March, Dan Ashmore, decoupling, do right, joke, running, Lido, Luna Foundation Guard, Reality, stablecoin, the earth, Earth Blockchain, Earth implosion, Earth Team, Terra validator, Truss (UST), TV L, American University of Science and Technology

What do you think of the issues Terra had over the last week? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.

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