In the early hours of Twitter, the validators behind the Terra blockchain decided to shut down the network, for the second time in less than 24 hours. At the time of writing this article, it is still not possible to buy or sell tokens of the cryptocurrency Terra (LUNA) on major trading platforms.
Terra (Luna) at $0.00005828 this morning (-99.97%). Behind this crash:
$40 billion evaporated
A crypto from the top 10 relegated to 222nd
The 2nd DeFi blockchain shut down
The 3rd stablecoin wiped out
A gateway to a severe MiCAAmbiance.
– Hadrien Augusto (@HadrienAugusto) May 13, 2022
L’application Binance, for its part, simply withdrew it, so as not to harm its users. The asset lost more than 99% of its value in a few hours. For those who hold Luna, it will be necessary to wait. Until the network is reactivated, no transactions are possible.
Overnight, the dip strengthened and the crypto Luna broke below $0.0001 (to below $0.00001). The more than 40 billion dollars of capitalization of a few days ago evaporated to drop below 270 million dollars this morning. Some, who held several thousand dollars worth of Luna, now find themselves with only a few cents in their wallets.
© CoinMarketCap
The cryptocurrency, once among the 10 largest in the world, is now relayed in 222nd position. The Terra blockchain, which was the second largest in decentralized finance (DeFi), is shut down. An unprecedented event that we explain to you in this article.
The Terra blockchain has officially halted at block 7607789.
Terra Validators have halted the network to come up with a plan to reconstitute it.
More updates to come.
— Terra (UST) ???? Powered by LUNA ???? (@terra_money) May 13, 2022
Why Crypto Luna Disappeared?
As the validators decided to shut down the Terra blockchain at around 4am this morning, exchange operations are no longer available. According to the explanations of the members of the Luna foundation, the latter “stopped the network to propose a plan to reconstitute it”, inviting the community to be patient with “more information to come”.
It is difficult to know when the patches will be deployed and when the blockchain will be able to resume service. Meanwhile, the price continues to decline below $0.00004123.
Directly linked to the UST stablecoin, which has de-indexed from the dollar rate, it is difficult for Luna to be able to go up. To increase its chances of a comeback, it would take a massive recapitalization (which Do Kwon, the lead developer behind TerraUSD, hasn’t achieved so far) and a boost in confidence.