The Terra blockchain was halted Thursday, as its governance token LUNA LUNAUSD,
dropped more than 99% over the past 24 hours to around $0.01.
“Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack,” according to a Tweet from Terraform Labs, which backs the blockchain.
Stablecoin USDTerra LUNAUSD,
is trading at around 34 cents, after it fell to as low as 23 cents Wednesday, according to CoinDesk data.
TerraUSD crashed. What does it mean for other stablecoins? Here are the potential winners and losers
As a stablecoin, USDTerra by definition is supposed to hold its value at $1. It’s break with the peg has been blamed for fanning turmoil throughout crypto markets.
What is an algorithmic stablecoin? Why is Terra in the news? Here’s what investors need to know.
Credit: www.marketwatch.com /