Terra blockchain halted as crypto TANKS 99.99%; Is this against decentralisation?
For the second time in as many hours, the Terra blockchain has been halted. Terraform Labs revealed the news on Twitter. Is this against decentralisation? Experts weigh in
- May 13, 2022,
- Updated May 13, 2022 12:35 PM IST
The Terra blockchain has once again been officially halted. The sequence of blocks had reached block 7607789 post which mining had been stopped.
Terra Validators have, according to a recent tweet, halted the network in order to design a strategy for rebuilding the blockchain after the token crashed by over 99 per cent.
Terra Luna's price has nearly wiped out after crashing this week. According to CoinMarketCap, the cryptocurrency dropped below 99 per cent levels just a few hours ago and is now trading at 98.5 percent down as of Friday at 8:30 a.m. IST.
On May 9, 2022, the US dollar was devalued, falling from $1 to $0.68.
Users began swapping UST for competing stablecoins when UST began trading significantly below its dollar peg, causing the UST Curve pool to progressively deplete. Short selling caused the price of LUNA, the UST collateral, to fall. In order to relieve the negative price pressure, Terra was compelled to mint extra LUNA.
Also Read: Terra blockchain halted again as crypto TANKS 99.99% Also Read: Cryptocurrency markets crash: Terra Luna down 99.99%, will it wipeout?
The Terra blockchain has once again been officially halted. The sequence of blocks had reached block 7607789 post which mining had been stopped.
Terra Validators have, according to a recent tweet, halted the network in order to design a strategy for rebuilding the blockchain after the token crashed by over 99 per cent.
Terra Luna's price has nearly wiped out after crashing this week. According to CoinMarketCap, the cryptocurrency dropped below 99 per cent levels just a few hours ago and is now trading at 98.5 percent down as of Friday at 8:30 a.m. IST.
On May 9, 2022, the US dollar was devalued, falling from $1 to $0.68.
Users began swapping UST for competing stablecoins when UST began trading significantly below its dollar peg, causing the UST Curve pool to progressively deplete. Short selling caused the price of LUNA, the UST collateral, to fall. In order to relieve the negative price pressure, Terra was compelled to mint extra LUNA.
Also Read: Terra blockchain halted again as crypto TANKS 99.99% Also Read: Cryptocurrency markets crash: Terra Luna down 99.99%, will it wipeout?