‘A Dark Day for Crypto’ – An In-Depth Look at the Destroyed Terra Token Ecosystem and Damaged Apps
People became concerned about the Terra-based stablecoin terrausd (UST) five days ago when it deviated slightly from the $1 parity. At the time, rumours and conjecture about Terra’s stablecoin collapsing spread like wildfire. Do Kwon, co-founder of Terraform Labs, dismissed it as an “amusing morning” and said that Terra opponents were now “all destitute.” Kwon insisted that UST’s de-pegging was no major problem at the time, and the Terra community agreed. The decentralised exchange (dex) Curve Finance then detected massive terrausd (UST) selling on the trading platform. “Yesterday, someone began selling UST in bulk, therefore it began to depeg,” the Curve Twitter account stated. “However, this was greeted with strong opposition, therefore the peg was reinstated.” A lot of ETH and stETH were sold to earn enough USD for it.”
At this moment, the community was much more disturbed, and Anchor Protocol began to witness substantial withdrawals. Anchor System was previously the third-largest decentralised finance (defi) protocol, with about $18 billion locked up shortly before the pandemonium began. The once-stable token terrausd (UST) is presently trading at $0.094 per coin, down from a high of $0.84 the day before. UST hit a low of $0.044 per unit around 11 hours before I wrote this post. While many digital currency trading sites have disabled Terra-based wallets, a few exchanges still accept UST deposits. Following the banning of LUNA and UST on Binance, the trading platform’s creator, Changpeng Zhao, often known as CZ, expressed dissatisfaction with the Terra team. The Terra team paused the blockchain on Thursday and made a change to the codebase before resuming it. After restarting the network, the team paused block production once more around 10:13 p.m. (ET) on Thursday evening. Furthermore, conversations for resuming the project have begun, and a Terra advocate has suggested taking a snapshot of the chain prior to the attack. Furthermore, Terra included a number of tokens that reflected certain fiat currencies, such as the Korean won (KRW). Terra’s terrakrw token has dropped 84.4 per cent in the previous seven days, as has Terra’s Australian dollar token.