LUNA Issuer Terra Halts Blockchain After Week of Losses

Nikhilesh De - CoinDesk

2022-05-12 16:29

The Terra blockchain halted after the terra token (LUNA) fell in value to below 2 cents on Thursday.

According to a tweet from Terraform Labs, the company behind the Terra ecosystem which includes the LUNA governance token and several algorithmic stablecoins, the price of LUNA fell too low to "prevent governance attacks," citing LUNA inflation as one factor. LUNA fell in price from nearly $120 in early April to between 1 and 2 cents on Thursday.
LUNA's price plummeted over 80 dollars in three days. TerraUSD (UST), one of the paired stablecoins, broke its peg on Monday, dropping to 37 cents at press time.

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