Terra Halts Validators. Is it the End? [u]

Terra, the creator of the algorithmic stablecoin TerraUSD (UST) and LUNA, has halted the Terra blockchain.

In a Tweet, Terra.Money stated:

The Terra blockchain was officially halted at a block height of 7603700. lcd.terra.dev/blocks/latest Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.

In a spectacular rout, LUNA crashed to almost zero. LUNA started the day at over $2 but lost more than 99% of its value in the ensuing hours. Perhaps even more dramatic is the fact that LUNA traded at over $119 just last month.

Earlier today, Terra said the peg pressure from UST was “rendering severe dilution” of LUNA. UST is tied to LUNA as the erstwhile stablecoin was able to trade one UST for $1 dollar in LUNA.

 

Terra said validators are “applying a patch to disable further delegations.”

A restart is said to be commencing soon.

Could it be the end for UST/LUNA? Some crypto prognosticators have called for UST to shut down. Some have called the whole thing a fraud or a failed experiment. Meanwhile, the founders continue to try and reanimate the zombied crypto. The dust is yet to settle.

Meanwhile, one crypto enthusiast has outlined his belief that the entire odyssey was part of a spectacular plot to make hundreds of millions of dollars = in a few short days.

Update: Terra has resumed block production. LUNA is around $0.023 and UST is stumbling around $0.37.

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