Terra’s UST loss of its peg has created a huge amount of turmoil in the crypto industry, which caused a lot of assets to be destabilized. But, a slight recovery in that LUNA as well as the UST price was mistaken for an indication of a trend reversal. A lot of investors then plunged into the fire well. So both instruments were barred from trading on several well-known exchanges.
As the blockchain has been also stopped and new strategies have been conceived could it be an indication of optimism for investors?
As was previously mentioned in Coinpedia, Terraform Labs is currently in talks with GAM, a Swiss asset manager GAM to improve the UST’s position. A updated update indicated that the UST could be fully collateralized in the near future.
Furthermore Do-Kwon, the founder Do-Kwon has also put together the rehabilitation plan that includes the expansion of base pool and burning UST and the staking of LUNA has also been discussed. However, the removal of both assets from the various exchanges could delay the implementation of the plan. Additionally, Anchor Protocol (ANC) that offered a reduction of the rate of interest from 19.5 percent down to 4 percent also sparked massive backlash.
In other words, until the newly created LUNA tokens do not go to waste the tokens are not likely to see a return. The chief executive officer of Binance who initiated the first step to end its LUNA Futures, and later removed from the market, explained in several tweets on the decision.
According to the founder certain investors were not aware of the newly issued LUNA and, as a result of an increase of just a little, they began purchasing LUNA again. Likely, LUNA price crashed and forced the platform to end the trading. CZ has also accused Terraform labs of failing to handle the current situation , by not establishing contacts with exchanges.
In such a situation traders and investors who currently are holding LUNA as well as UST tokens will be left but to watch the development of the platform.