LUNA pumps and dumps repeatedly in weekend’s roller coaster run
The price of LUNA, the native token of Terra, is now as volatile as low-cap meme currencies, and is currently at 23,716.5% from its all-time low set on Friday, according to CoinGecko data.
See related article: UST loses dollar peg as Terra market cap slumps
Fast facts
The Terra network suffered a major meltdown last week, as its UST lost its peg to the U.S. dollar, while the network botched the attempt to save the algorithmic stablecoin by mass-producing LUNA.
UST is an algorithmic stablecoin pegged to the U.S. dollar whose value is supposed to be maintained by LUNA as collateral.
Algorithmic stablecoin TerraUSD (UST) has not regained its peg, trading at US$0.1766 at press time.
Network developer Do Kwan posted a plan to revive LUNA on Saturday, suggesting reconstituting the network and resetting ownership at 1 billion tokens to be distributed among current and former holders.
Binance CEO Changpeng “CZ” Zhao tweeted in reply that this plan would not work, calling it “wishful thinking.”
Ethereum co-founder Vitalik Buterin tweeted that “algostable,” a term used to describe algorithmic stablecoins, “has become a propaganda term serving to legitimize uncollateralized stables by putting them in the same bucket as collateralized stables like RAI/DAI.”
See related article: Stablecoins promise much, but can they deliver?