- The Terra ecosystem seems to be in a bit of a fix as both its native tokens have been dropping lower and lower on the charts.
- Do Kwon stated that he’s “close” to announcing a recovery plan for UST.
- Kwon did not elaborate on the details of the recovery plan in his Tweets.
The Terra ecosystem seems to be in a bit of a fix lately as both its native tokens, LUNA and UST, have been dropping lower and lower on the charts. Yesterday, the market crash wiped off about 40% and 60% from the respective tokens’ value. The pessimistic sentiment continues as at the time of writing the price of LUNA stands at $4.51 and UST stands at $0.304.
The Terra community has understandably been concerned about the current state of affairs regarding the Terra ecosystem. Luckily, Do Kwon, the founder of Terraform Labs, took to Twitter (NYSE:TWTR) and made an announcement to calm people’s nerves.
In the Tweet, Kwon stated that he’s “close” to announcing a recovery plan for UST. After this he asked people to “hang tight” and thanked them for their support during the difficult time.
Kwon also stated that he might be quiet for a while as he needs to be completely focused on delivering on his promises.
A while later he Tweeted that he is “getting close…stay strong, lunatics.”
Kwon, however, did not elaborate on the details of the recovery plan in his Tweets. It is worth recalling the fact that the LFG Council had voted to deploy $1.5 billion in capital to ally market concerns around UST on May 9. The motive behind this move is to strengthen the liquidity around UST’s peg.
This leads people to believe that Kwon’s recovery plan could perhaps include something more with regard to reserve funds.
As always, Twitter users had an opinion on Terra’s situation and many were negative. Peter Schiff went as far as to say that “guys at Luna” don’t understand the “stability” essence of stablecoins.