The price of LUNA, the native token of Terra, is now as volatile as low-cap meme currencies, and is currently at 23,716.5% from its all-time low set on Friday, according to CoinGecko data.
See related article: UST loses dollar peg as Terra market cap slumps
- The Terra network suffered a major meltdown last week, as its UST lost its peg to the U.S. dollar, while the network botched the attempt to save the algorithmic stablecoin by mass-producing LUNA.
- UST is an algorithmic stablecoin pegged to the U.S. dollar whose value is supposed to be maintained by LUNA as collateral.
- Algorithmic stablecoin TerraUSD (UST) has not regained its peg, trading at US$0.1766 at press time.
- Network developer Do Kwan posted a plan to revive LUNA on Saturday, suggesting reconstituting the network and resetting ownership at 1 billion tokens to be distributed among current and former holders.
- Binance CEO Changpeng “CZ” Zhao tweeted in reply that this plan would not work, calling it “wishful thinking.”
- Ethereum co-founder Vitalik Buterin tweeted that “algostable,” a term used to describe algorithmic stablecoins, “has become a propaganda term serving to legitimize uncollateralized stables by putting them in the same bucket as collateralized stables like RAI/DAI.”
See related article: Stablecoins promise much, but can they deliver?