Terra Luna Last-Ditch Effort To Save UST Stable Coin With $3 Billion In Bitcoin
Terra Luna Last-Ditch Effort To Save UST Stable Coin With $3 Billion In Bitcoin

Terra Luna: Last-Ditch Effort To Save UST Stable coin With $3 Billion In Bitcoin

Prior to its demise, Binance’s UST algorithmic stable coin was capable of bringing in huge profits for the world’s largest crypto exchange.

Tokens were exchanged for $3 million in Luna tokens in 2018. Binance CEO Changpeng Zhao revealed in a tweet on Monday that the value of these tokens peaked in April at $1.6 billion. The tokens currently have a value of around $2,391.

The retail traders who lost money in Luna’s meltdown last week should be reimbursed before Binance, Zhao stated, despite Binance’s significant losses.

For the sake of setting an example in terms of PROTECTING USERS, Zhao said in a tweet on Monday that “Binance will let go and ask the Terra project team to recompense the retails users first, before Binance ever,”

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Last week, Terraform Labs’ algorithmic stable coin UST, which was theoretically linked to the price of the U.S. dollar, plummeted to approximately 13 cents. Since Luna was supposed to help UST’s stable coin maintain its dollar peg, it also fell. Luna’s value has plummeted from a peak of $119 barely a month ago to a sliver of a cent.

Terraform Labs, the firm that built Luna, has been a longtime backer of Binance. VentureBeat reports that Binance’s investment arm led a $32 million funding round in 2018 that Terraform Labs stated at the time was meant to develop a “new financial system on the blockchain.” Terraform.

Terraform Labs and Binance haven’t had the best of times lately, however.

Zhao expressed his disappointment with the Luna and UST teams’ handling of the collapse just a week ago. Don Kwon’s plan to construct a new blockchain and give millions of tokens in the Terraform Labs’ new cryptocurrency to backers was met with open criticism from Zhao.

In a tweet, he declared, “This will not work.” According to Zhao, “So far we haven’t received any positive feedback or much response at all” from the Terra team.

Small investors suffered significant losses as a result of the crashes of UST and Luna, and many of them expressed their frustration on social media last week.

To help out the 99.6% of wallets that lost money due to the UST crisis, Zhao has teamed up with Ethereum co-founder Vitalik Buterin and algorithmic stable coin USD developer Justin Sun to push a proposal that would reimburse all cash to that 99.6% of wallets that suffered the greatest financial loss. According to Sun’s announcement on Monday, he will donate $10 million of his own stablecoin, pegged at the US dollar, in order to compensate the 236,000 UST holders who are the most in need.

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Terra ecosystem-supporting Luna Foundation Guard said on Monday that it had delved into its funds to stabilize UST. UST’s remaining reserves will be used to pay UST’s remaining users, with the smallest holdings getting the most attention. However, it was unclear how the compensating effort would be implemented.

As of Monday, the organization tweeted that they were evaluating other distribution options and will provide an update at a later date.

About Neon Martin 377 Articles
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