TRIBUNNEWS.COM – The price of the Terra USD (UST) Stablecoin and the Luna crypto token has continued to decline in recent days.
Terraform Labs, the company behind the two crypto assets, even stopped new transactions 2 times in less than 24 hours.
In a company tweet on Twitter, Terraform Labs said that validators, or entities entitled to verify transactions on the blockchain, decided to “make plans to reorganize” the Terra network.
“Blockchain Terra is officially stopped at block 7607789. Validator Terra stopped network to reorganize plans. Stay tuned for upcoming updates,” the company wrote on Twitter with the handle @terra_money.
The company also provided information via Discord, saying “The quorum among validators is trying to stop the network to avoid the DECIMAL crisis due to Luna’s exponential depreciation,” said Validator Terra before closing the transaction, as quoted by KompasTekno from Bloomberg.
Previously, the validator also had time to stop transactions and then open them again. The analogy of this practice is like turning off the computer and turning it on again, resulting in a software update. In blockchain networks, this practice is done to help avoid cyber attacks.
The price of UST itself was sold for only 11 US cents on Friday (13/5) afternoon. Meanwhile, Terra Luna plunged to almost zero prices. In fact, the token once touched the figure of 119 US dollars (Rp 1.7 million) a month ago, namely in April 2022.
According to CoinMarketCap data, total Luna tokens in circulation rose from 1.46 billion to 6.5 trillion as of Thursday (12/5).
Meanwhile, UST’s relationship with Terra Luna is part of an effort to maintain the US$1 peg. So the UST owner can exchange one UST (price above or below 1 US dollar), with one Luna coin or vice versa.
How does Terra USD (UST) affect the price of Terra Luna?