Do Kwon has announced a recovery plan in the works for UST and, therefore, the Terra ecosystem. UST has lost its peg from the dollar, and its native token LUNA is down is down 90%, currently trading at a 12-month low of $4.69.
Close to announcing a recovery plan for $UST. Hang tight.
— Do Kwon
(@stablekwon) May 10, 2022
The Terraform Labs CEO also apologized for being “quiet,” citing a need for “razor focus to deliver, thanks everyone for the support.”
Since the tweet, UST dropped to 22 cents on the dollar vs. USDT on Binance. The recovery plan was announced when UST had “only” dropped to a low of $0.64. He reiterated the program several hours later, stating that they were “getting close” and asked the community to “stay strong.”
Getting close … stay strong, lunatics
— Do Kwon
Amidst the wait for a recovery plan, many users liquidated positions on Anchor Protocol, which led to LUNA losing roughly 90% of its value over the past 24-hours. The call to “stay strong” appears to be falling on deaf ears as the community cries out for help.
Some of the replies are listed below:
Can you hurry up?
My wife and kids already left me because I put our life savings into a stablecoin and it's no longer stable
— sassal.eth
(@sassal0x) May 10, 2022
Tell me it’s going to be printing some more fake money without telling me it’s about printing some more fake money.
— Michaël van de Poppe (@CryptoMichNL) May 10, 2022
@stablekwon I panic sold cause i was using it as a savings account. Literally needed it for my tax and rent. I’m guessing no recovery plan for the 20% of my savings that just vanished? Serious question I’m an adult with accountability so can’t be mad at anyone but it hurts…….
— Crypto_Otter (@Crypto__Otter) May 10, 2022
I lost $1,6 million in this #Luna fiasco.
— The Moon (@TheMoonCarl) May 11, 2022
After recent events, how Luna Foundation Guard will attempt to recover the Terra ecosystem is up for debate.
Given the amount of TVL lost from Anchor Protocol and the emptying of the LFG Bitcoin reserves, it is hard to imagine a way back for what was, until this week, one of the most significant crypto projects in the world.
Perfect timing for a stablecoin report
The timing of the incident appears to tie in with a US treasury report on stablecoins coincidently. The announcement came amid the first of the significant sell-offs of UST on Anchor Protocol over the weekend. Rumors are circulating that Citadel is behind the initial volatility as a few wallets dumped hundreds of millions worth of UST.
Janet Yellen: The Treasury will issue a report on crypto and stablecoins shortly
— Blockworks (@Blockworks_) May 10, 2022
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