Altcoins: Another Terra's LUNA price failed recovery attempt causes uproar in the crypto community
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- Terra’s LUNA price fails to recover despite Proposal 1299 to rescue over 154.7 million UST stuck in Osmosis and side chains.
- Anonymous Terra community members have come forward as whistleblowers, revealing facts on the deal with Jump Crypto.
- Do Kwon told the Terra community that sending LUNA to the burn address is "a loss" and "not a good idea."
Several whistleblowers have contacted Terra community member “FatMan” and revealed details of Terraform Labs co-founder Do Kwon’s monthly payments to quantitative trading firm Jump Crypto and their role in the crash of UST. Proposal 1299 has failed to fuel a recovery in Terra’s LUNA price.
Terra’s LUNA price stuck while whistleblowers call out Do Kwon
Algorithmic stablecoin TerraUSD (UST) witnessed a colossal crash more than a week ago, losing its $1 peg, with Terraform Labs’ tokens LUNA and UST lost a combined market value of $39.1 billion within a week. This event has been marked as the “first crypto bank run” in history and had a catastrophic impact on Terra’s LUNA price, which crashed from almost $100 to the current levels below $0.0002 in the span of a couple weeks.
Also read: LUNA price has turned into a crypto zombie with no revival to come
Terra Research forum user “FatMan” has come forward with insights into Terra’s co-founder Do Kwon and the deal with Jump Crypto. @FatManTerra has published his findings in a recent Twitter thread.
According to the findings, Do Kwon pays a fixed monthly installment of LUNA to repay his debt to Jump Crypto. @FatManTerra is yet to publish further details of these transactions. This Agora Terra forum user states that Jump Crypto manipulated retail investors into losing billions on LUNA and UST. The community member is yet to furbish evidence of transactions that connect Jump Crypto to the UST crash.
Terraform Labs proposal 1299 fails to rescue 154.7 million UST
In order to rescue the UST stuck on side chains, proposal 1299 was put forward by Terraform Labs. During the colossal crash, Terra validators disconnected Inter Blockchain Communication (IBC) as a stop gap solution. The proposal was passed, however, today it failed to execute due to technical issues.
Among all side chains, Osmosis alone accounts for 154.7 million in LUNA and UST. The Terraform Labs tokens stuck on side chains are not covered in the “Revival Plan” that compensates holders for their losses in the coordinated attack.
As a result of this failure, UST and LUNA tokens stuck on side chains will be excluded from the launch snapshot, thereby resulting in losses for community members. The rescue proposal 1299’s execution is key to a potential Terra’s LUNA price successful recovery.
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LUNA sent to burn addresses "is lost, not a good idea"
Do Kwon has been criticized by the Terra community for his plan to leave the algorithmic stablecoin UST out of the final recovery strategy for the Terra ecosystem. Community members have reached out to Kwon on Twitter and informed them that they can aid Terra’s recovery by burning LUNA. Do Kwon answered by telling the Terra community and his 1 million followers on Twitter that LUNA sent to burn addresses is lost and it is not a good idea to burn these tokens.
Terra Ecosystem Plan 2, Kwon’s proposal for the rebirth of Terra, has been criticized by the community. Over 52.6 million voters have abstained from voting on Proposal 1623, and 35.2 million have voted “No with Veto.” This puts the count of negative votes at 87.8 million, which accounts for over 33% of the community not having confidence in the plan for the recovery of Terra’s LUNA price.
Crypto market trying to bounce back
While the prospects for a Terra LUNA price recovery still look grim, the cryptocurrency market is trying to regain its footing, with several coins showing technical bullish setups. Check the following video to see how to trade them.
