After Terra’s algorithmic UST depegged over the weekend and the price of LUNA dived to just about zero, the majority of the crypto community declared Do Kwon’s protocol dead. Binance announced the decision to delist both UST and LUNA as of May 13, the exchange confirmed, adding that withdrawals were to remain suspended until the network stabilizes.
The crisis fueled a broader crash of the crypto market, with nearly all major coins and tokens, save for stablecoins USDC and BUSD, in deep red. Bitcoin has fallen to pre-2021 levels and Tether’s stablecoin USDT has been in and out of its peg. Six people are believed to have ended their life over the losses they had suffered from Terra’s fallout.
Despite these developments, Terraform Labs (TFL) remains “in the war room,” Terra tweeted on Thursday, and whether out of loyalty or an extreme fear for their financial future, some LUNA enthusiasts have remained on board.
Do Kwon, Terra’s maverick CEO and avid Twitter user, largely remains silent, but Terra’s main Twitter account has been overflowing with community proposals, including quadrupling Terra’s daily minting capacity to accelerate the burn rate of UST, burning the community pool UST supply, and staking 240m LUNA to prevent network governance attacks. The community can now vote on those proposals on Terra’s forum.
A few hours later, the TFL made the decision to halt the Terra blockchain at a height of 7603700. Many considered the move to be LUNA’s funeral, but Terra did resume block production, if only for a few hours.
The network’s most recent tweet announces another halt at block 7607789, with no immediate plan to bring it back online. A former Terra member suggested Do Kwon’s team could be hesitating between restoring a snapshot prior to attack, removing TFL, and collateralizing UST.
Meanwhile, a stranger visited Do Kwon’s home in South Korea. When Kwon’s wife opened the door, he reportedly asked if her husband was home, then fled.
Kwon’s wife reported the incident to the police and testified that the location of their home, where the couple live with their newborn daughter Luna (yes, really) was revealed after the network crashed. The family received emergency personal protection.