- Binance has delisted LUNA after the token hit zero overnight
- Terra blockchain validators have halted the blockchain while they try to work out what to do
- Do Kwon should prepare for class action lawsuits
LUNA trading pairs have been delisted from Binance as Terra validators turned off the blockchain following the project’s spectacular collapse. As a result, having been lauded by the LUNA community as the second coming of Christ, founder Do Kwon is now reportedly asking for police protection from LUNA and UST investors who have lost their life savings, despite his assurances that the project was still alive and that “Terra’s return to form will be a sight to behold”.
LUNA Life Support Switched Off
LUNA has experienced wild price fluctuations on its way from $60 on Monday to $0 today, while those holding LUNA and UST watched in horror as their portfolios crumbled. The failure of UST to regain its peg on Wednesday more or less spelt the death knell, but Kwon still promised resolution in a lengthy Tweet thread:
1/ Dear Terra Community:
— Do Kwon 🌕 (@stablekwon) May 11, 2022
Any hope has now been abandoned, with Binance delisting LUNA overnight, a move that will inevitably be followed by other exchanges, and Terra validators now switching off the Terra blockchain:
The Terra blockchain has officially halted at block 7607789.
Terra Validators have halted the network to come up with a plan to reconstitute it.
More updates to come.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 13, 2022
A proposal being considered by validators, called the LUNA Go Forward Proposal, is to temporarily restart the blockchain, mint UST and hand it out to a certain section of the supporter base:
After this, UST will “cease to exist in its current form and will be relaunched after genesis in collateralized form.”
Do Kwon Targeted
While the ramifications of the LUNA/UST collapse are yet to be fully felt, with projects built on LUNA and funds with large UST holdings yet to publicize how they will move forward, much of the focus has been on Kwon himself. His hubris at those who criticized the Terra model, including a complete inability to believe that it could possibly go wrong, has been the topic of much comment in the crypto space this week, and there are rumors that Korean investors have paid him a visit at his house, leading to police protection being called:
— Doo | StableNode @GoblinTown (@DooWanNam) May 13, 2022
Class action lawsuits are inevitable, and while Kwon’s attitude over the past few weeks may look back with mere hours of hindsight, when his tweets are read out and his interviews played in a courtroom it will be ten times worse.