Terra Founder Reveals Plan To Rebuild Ecosystem

As you probably know by now, the [project called Terra is the main trigger of the crypto disaster we’ve all seen lately, Now, it’s been reported that the founder of this project says that he has a plan to rebuild the ecosystem.

According to the latest reports, the Terra founder Do Kwon has revealed a plan to rebuild the project’s ecosystem following LUNA’s 99% collapse from its all-time high to below $1 and TerraUSD (UST) losing its dollar peg.

In a Twitter thread, Kwon said that he intends to work with the Terra community to “weather the crisis” and get back to original form.

The online publication the Daily Hodl notes that LUNA crashed to $0.69, more than 99% down from its all-time high of $119 after Terra’s UST stablecoin lost its peg to the dollar.

“UST was designed to stay pegged to the US dollar and allows holders to redeem 1 UST for $1 worth of LUNA. When UST dipped well below the dollar mark, massive amounts of sell-pressure dragged down LUNA’s prices as aggressive arbitrage took effect,” according to the online publication mentioned below.

Kwon stated the following:

“The price stabilization mechanism is absorbing UST supply (over 10% of total supply), but the cost of absorbing so much stablecoins at the same time has stretched out the on-chain swap spread to 40%, and Luna price has diminished dramatically absorbing the arbs.”

He also said:

“Before anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before $UST can start to repeg. There is no way around it.”

Financial Express online publication is analyzing the reasons for which Terra is dropping in price.

They revealed that Terra (LUNA) holders are 96 percent poorer than what they were 7 days back.

“LUNA price has fallen by over 96 per cent in the last 7 days to $3.36. In the last 24 hours itself, LUNA has fallen by around 90 percent,” says the online publication mentioned above.