Evidently, not all crypto is as decentralized as claimed. It was announced this morning that following total carnage within the LUNA token, which fell as low as $0.00349 earlier today, the associated stablecoin known as Terra has been halted for trading.
The blockchain itself has reportedly been halted by Terraform Labs, the issuer behind both Terra as well as the LUNA token. The halt this morning was announced via Twitter, using the firms account @terra_money.
“Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack,” the company said. “Validators are applying a patch to disable further delegations, and they will coordinate to restart the network in a few minutes.”
Inflation has been a major issue for the token following the de-pegging of the Terra stablecoin this past weekend. Unlike other stablecoins, which are “stable” via fiat holdings, Terra is stabilized via a mechanism whereby if it loses its peg, tokens can be exchanged for $1 worth of LUNA tokens. With the stablecoin falling as low as $0.25 per each in recent days, exchanging of tokens has result in more than a billion LUNA tokens being issued.
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The sudden printing of LUNA tokens meanwhile has caused the token to fall dramatically, dropping as low as $0.003 per token, while currently trading at $0.015. Comparatively, the token traded for more than $119 just a month ago.
So much for that “decentralized” blockchain.
Information for this briefing was found via Terraform Labs and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
