Terra Ecosystem Collapsed: Here Is What’s Next for Do Kwon and The Community
The Terra ecosystem was a groundbreaking project in the field of cryptocurrency. Do Kwon and his partners created an innovative game that combined blockchain, VR and AR technology to create a unique experience for gamers. Having seen some major changes on how gaming will be done with new advancements such as blockchain and VR/AR, it is given that we might see other players within the industry take up similar concepts.
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The “terra ecosystem revival plan” is a plan that Do Kwon and the community have been working on for quite some time. The plan will be released soon, so keep your eyes out!
The Terra ecosystem has had a rough few days as it struggles to cope with what is easily the most difficult phase in its more than four-year history. Terra’s native token and USD-pegged stable currency disintegrated in less than five days, making the situation much worse.
Terraform Labs attempted but failed to retain the value of Terra assets. Several inquiries against the ecosystem’s designer, Do Kwon, have been started in the wake of this dramatic collapse. Terra’s next events have also been canceled as a result of the investors’ massive losses.
Terra’s blockchain was put on hold indefinitely.
Despite efforts to stabilize the ecosystem, Terraform Labs was unable to keep up with the fast fall and had to shut down the network, halting block production. At block height 7603700, the Terra team decided to halt the blockchain.
Terra made the choice to protect the network from a much lower cost of assault that has made it exposed to governance attacks. Before the blockchain could be brought back up, validators planned to install a patch that would deactivate delegations. Block decrease continued in less than two hours after the patch was applied as planned.
On May 13, at 2:00 a.m. UTC, the Terra team notified the community that the network had been formally paused at block 7607789 to enable validators to devise a rescue plan to re-establish the network. The blockchain has been decommissioned indefinitely.
As the Terra situation deteriorated, crypto exchanges were worried and devised plans to shield consumers from irreversible losses. The suspension of the LUNA and UST trading pairings was announced initially by Binance.
The decision was made when the Terra team failed to burn overly minted LUNA to return the UST peg to $1, according to Changpeng Zhao, CEO of the crypto exchange.
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Zhao added that while the network was down, some Binance users were stockpiling LUNA, unaware that once the network was up and running, the impending price fall would strike them again. This is because the LUNA tokens that were previously “minted owing to defects in the architecture of the Terra protocol” will flood the market once network congestion is addressed.
Terra: A Case for Regulating Digital Assets
The surrender of LUNA and UST has created a “reference point” that will be used in the future to promote the anti-crypto message. However, it also suggests that stable coin and cryptocurrency regulation could not come soon enough, at least according to Securities and Exchange Commissioner Hellen Pierce.
On Thursday, the pro-crypto SEC commissioner claimed “action” on stable coin regulation may come soon at an online panel for the London-based Official Monetary and Financial Institutions Forum (OMFIF). She said that since this is a new area for rules, determining what is suitable will need “trial and error.”
Terra dApp Expo has been postponed.
Terra dApp Expo has been canceled. The announcement comes only hours after the event’s organizers, Orbital Command, announced that the event will go on as planned.
Security concerns prompted the cancellation of the Expo, which was originally scheduled for June 09 and 10 in Texas, according to a Saturday tweet from the Expo’s organizers. Some ‘understandably furious’ investors who had lost money owing to the meltdown had made threats, according to the team.
“After careful consideration of the community’s reactions to the concept of TDX continuing, we have unfortunately decided to cancel the event […] Although many #LUNAtics would still want to meet in person […] there have been significant threats made by understandably furious people, and we don’t want to put anyone’s health or life in jeopardy.”
Them who had already bought tickets would be refunded, according to the company, which also promised to keep users updated.
Do Kwon is distraught as traders lament their losses.
The simultaneous collapse of Terra assets has cast doubt on the Terra ecosystem’s nature as well as TerraUSD’s algorithmic pegging process. Do Kwon, in particular, has been the focus of attention in recent days. Holders and dealers of LUNA, on the other hand, suffered large losses when the asset’s value declined.
What makes matters worse for Kwon is his outspoken public presence and aggressive tone in his social media posts. This week, Kwon took longer than typical absences from social media, which he justified by claiming that he needed to focus all of his time on devising a strategy to save the Terra assets.
On Saturday, he reappeared in the community, writing about how upset and apologetic he was over the UST depegging.
“I am sad about the suffering my creation has caused you all. I still think that decentralized economies need decentralized money, but it’s evident that $UST won’t be that money in its present form.”
A Swiss asset manager has ruled out a rescue.
The Terra community is now beset by problems and losses. Even what seemed to be a ray of optimism turned out to be a mirage.
According to another news release, Swiss asset management company Gam Holding disputed allegations that it will infuse $2 to $3 billion to absorb surplus UST. Gam Holding said that it was investigating the false story.
Do Kwon, the creator of Terra, has recently announced that Terra will be ceasing all operations. The community is now in a state of confusion and many are left with questions. In this article, we will explore what’s next for Do Kwon and the community. Reference: do kwon net worth.