Terra’s UST losing its peg has caused massive unrest in the crypto space which has destabilized many assets. However, a slight correction with Luna or UST price was wrongly considered a trend reversal. And many investors jumped into the burning well again. And so both assets were suspended from trading on several popular exchanges.
Now that blockchain has also been put on hold while new measures are thought of, should this be a ray of hope for investors?
As previously covered by Coinpedia, TerraForm Labs is in talks with Swiss asset manager GAM for the elevation of UST status, with a new update suggesting that UST may be fully collateralized in the future.
And in addition, the founder, Do-Kwon, has put together a recovery plan that includes increasing the base pool, burning the UST and staking LUNA. However, delisting of both the properties from different exchanges may hamper the progress of the scheme in a big way. In addition, the Anchor Protocol (ANC) which proposed a cut in the interest rate from 19.5% to 4% also received significant response.
Therefore, until and unless the newly created LUNA tokens are burned, no one can expect a recovery. The CEO of Binance, who took an initial step to halve Luna Futures, later explained the action in a series of tweets.
According to the founder, some investors were unaware of the newly created LUNA and therefore started buying LUNA again with a slight increase. As expected, the price of LUNA continued to decline which forced the platform to cease trading. CZ also accused TerraForm Lab of weak handling of the current situation by liaising with exchanges.
Therefore, in such circumstances, traders and investors who already hold LUNA or UST tokens are left with no option but to wait and watch the future development of the platform.