Terra has failed its investors, but we are hoping the creators won’t fail the crypto itself!
Terra, the protocol behind the UST token has lost over 95% of the investors’ wealth after it declined by almost 99%. There has been enormous selling pressure on Terra LUNA as investors are losing faith in crypto. Several crypto exchanges have extended support facilities to alleviate the arbitrage opportunities and finally end the sell-off season for LUNA. Like crypto exchanges, Binance stopped Terra withdrawals from its exchange network. The developers are coming up with various types of solutions that can help Terra retain its lost value.
Terra developers have suggested that token burn would be one of the best ways to increase the value of LUNA in these volatile times. Earlier this, the Terra Founder created another strategy that involved using US$3.5 billion worth of Bitcoin as Terra reserve to help surge the value of UST. While it’s clear that Terra’s price dive caused huge financial for crypto investors, there is quite a little information as to how this Terra reserve plan turned out and what actually happened to the reserve.
Crypto experts say that it is quite vital for Terra investors to make out the process of using Terra reserve for uplifting UST. Do Kwon, the Terra Founder said earlier tweeted that using US$3.5 billion worth of Bitcoin qs Terra reserve would help them re-establish UST and investors would soon come to know about the entire procedure. But unfortunately, the entire process has been quite obscure and LUNA developers are also not quite forthcoming about their current moves. The most critical part of this plan was its implementation. But if there is no implementation, then how will Terra regain its profits? Will burning LUNA tokens be enough for UST to stabilize to its peg? Currently, Terra is in quite a volatile state, and establishing UST from its zero value would require much work and development plans from its creators. But it also needs to regain the lost trust of the investors. Coming out and being transparent might be the first step that the Terra Founder should consider before making any further plans.
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