The crypto market is yet to come to terms with the fact that TerraUST and LUNA completely collapsed by $0. The shock still lingers and the bitter memory will remain etched in investors’ minds for the entire year. Nobody predicted Terra LUNA to fall 100% but ultimately it turned out to be reality and a bitter pill to swallow. HEX founder Richard Heart spoke exclusively to Watcher Guru about the stablecoin crash and suggested how another crash like this can be avoided.
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Talking about the Terra LUNA crash, Richard Heart said, “I think projects should be honest about the risks and volatility involved.”
He continued, “All stablecoin should disclose the risk of collapse, and how that might happen. Especially algorithmic stablecoins. Many people didn’t know a ‘stable’ can go to $0.”
He suggested that the market needs more informative materials for investors to rely on than simply buying coins with the highest hype. Terra’s stablecoin showed the market a stark reality that not everything named ‘stable’ is indeed stable. The phrase ‘anything can happen in the crypto market’ remains intact and acts as a reality check to investors.
So What Next For Terra LUNA?
Terraform Labs founder Do Kwon’s proposal to ‘Hard Fork’ LUNA received 65.50% of the governance votes. The votes paved the way for Kwon to launch the new LUNA 2.0. The rebirth of LUNA is set to launch on May 27th with the new blockchain. The current existing network will be renamed Terra Classic (LUNC) and the new blockchain will be named LUNA.
However, investors on social media seem to be unhappy with the move. “Why are you guys rushing to list a new coin? It only takes you guys two weeks to develop a new one. A lot of things aren’t clear enough yet. For example, a lot exchanges don’t have wallet and do not allow us to transfer classic Luna to Terry station. How can we get airdrop?” tweeted a user.
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Terra (LUNA) jumped to green after the governance vote went in favor of it. At press time, LUNA was trading at $0.00016960 and is up 5% in the 24-hours day trade. However, it is down 100% from its all-time high of $119 which it reached just last month.