Terra Crash Spilled Over Into Other L-1 Blockchains, Here's How

Terra's recent crash appears to have undermined investor confidence in other major layer-1 (L-1) blockchains, data shows. The blockchain's value imploded in the first two weeks of May, and is now trading at a fraction of the billions it was initially valued at.

Timeline of Terra-luna

Activist investor Bill Ackman weighed in on the recent Terra crisis, calling the protocol a crypto version of a pyramid scheme. Ackman's comments come in wake of the Terra blockchain losing most of its value in the span of a few days, as the de-pegging of its UST stablecoin cause a massive bank run.

Luna Foundation Guard CEO, Do Kwon, has released a new proposal entitled “Terra Ecosystem Revival Plan 2.” In it, he has outlined an updated version of his original plan, which described forking the current Terra blockchain from a snapshot taken before the ‘attack.

It's been a rough couple of weeks for the Solana [SOL] token that has been dealing with some new crypto assets as market cap neighbors after Terra [LUNA] and TerraUSD [UST] crashed down the rankings. However, at press time, the eighth biggest crypto token by market cap was worth $54.50, after rallying by 3.53% in

Do Kwon, the Terra (LUNA) protocol founder, proposed a resurrection strategy to bring the project back from the ashes. Kwon advocated splitting the protocol's existing form into two distinct ecosystems, Terra Classic and Terra 2.0. Terra Classic will favour users; this chain will accept stablecoins exactly as Terra did before its meltdown. Meanwhile, the hard-forked The post Do Kwon suggests Terra (LUNA) hard fork to revive the protocol appeared first on Invezz.

As the Terra blockchain collapsed, it decided to eliminate a lot of apps, including Anchor, which was the largest DeFi protocol on the chain at a given point. However, the protocol is worth nothing at the moment.

The crypto economy was under complete volatility for the past few weeks, but the space faced had the worst one after one of the largest stablecoins, TerraUSD (UST) de-pegged from its $1 value. After UST de-pegged, Do Kwon, the founder of Terraform Labs, shared an update regarding the rescue plan wherein he said the investors …

Many crypto giants including Binance CEO, CZ had earlier expressed their disapproval over the Terra forking plan. Do Kwon has however decided to take the lone path by putting forward a proposal for the same.

An op-ed article published in the state-backed Chinese publication Economic Daily, has suggested that the recent crash of the Terra blockchain's LUNA and the de-pegging of the UST stablecoin vindicate the Asian country's decision to ban crypto-related activities. In the article, the author names the interest rate hikes by the U.S. Federal Reserve and the

Terraform Labs CEO and co-founder Do Kwon has announced forking the Terra network into a new chain. 3/ Currently, these key precepts underpin most schools of thought:– The #LUNAtic community is unparalleled in its passion– The builder talent pool is broader and deeper on Terra than most ecosystems– Terra's blockchain is incredibly robust, as attested …

Following the cataclysmic meltdown of the Terra ecosystem last week, the Luna Foundation Guard (LFG) has been accused of bailing out UST whales with its bitcoin trove before the project came crashing down. The LFG had allegedly allowed select UST holders and insiders to cash out their UST positions worth approximately $2.7 billion at close to $1 before the digital asset fell to less than 10 cents, leaving retail investors scratching their heads in losses.