Do Kwon hints at ‘recovery plan’ for Terra’s UST; LUNA-tic reactions follow

Lavina Daryanani
Source: Asia Markets

The Terra ecosystem has evidently been in a fix of late. The price of both its native tokens—LUNA and UST—has been mercilessly stooping lower on the charts. Yesterday’s crash wiped off 60% and 40% of the tokens’ respective values. With the pessimistic sentiment continuing to prevail, LUNA was valued at $18.89, while UST stood at $0.804 at press time.

Do Kown to the rescue

People from the Terra community have been quite concerned about the state of affairs in the ecosystem. Terraform Labs’ founder—Do Kwon—took Twitter to make an announcement of an announcement. The same, managed to provide some respite to people from the space.

The exec proclaimed that he’s “close” to announcing a recovery plan for UST. He asked people to “hang tight” and thanked them for the support. Kown also highlighted that he did not intend to remain quite amidst the chaos, and justified his decision of choosing to do so by stating that he needed “razor focus” to deliver.

Posting another “getting close” update a few hours later, Kwon tweeted:

Via the afore tweets, the exec did not chalk out the exact plan. However, it is worth recalling that the LFG Council had voted to deploy $1.5 billion in capital to ally market concerns around UST on 9 May. The ulterior motive of the said move was to significantly strengthen the liquidity around UST’s peg. Back then Kwon had stated,

“Observe over the next few days not on whether LFG chose to deploy reserves, but on how.”

In fact, he asserted the same in another tweet too. So, Kwon’s larger recovery plan would, perhaps, positively include something more w.r.t. reserve funds.

Community’s LUNAtic reactions

Crypto Twitter users seldom let go of an opportunity to take a dig at ecosystemic fallacies. Something similar has been happening of late too.

Peter Schiff, for instance, quite outrightly said that the “guys a[t] Luna” don’t understand the “stability” essence of stablecoins. He tweeted:

Notably, around 5 weeks back—during the beginning of April—LUNA peaked at $120. However, earlier during the day, this token created a new local bottom at $13.57. Owing to the approximately 90% dip in value over such a short span of time, people have started mockfully contending that LUNA would stoop to down to $1 and assume the role of a stablecoin.