In the last few days, the crypto industry had witnessed one of its worst sell-off with Terra blockchain suffering the most.
The Layer 1 blockchain, which was among the top 10 largest digital assets by market cap, saw the value of its native token, LUNA, tank by 100%. To put it in perspective, the crypto asset was trading for over $70 just a week ago.
Aside from LUNA, UST, the network’s stablecoin also lost its peg and became the latest failed algorithmic stablecoin.
Crypto Community Reacts to LUNA’s Recovery
LUNA’s recent price rally is almost insignificant especially when it is compared with the massive decline that preceded it, however, the rise came in tandem with the revelation of Terra’s founder, Do Kwon, on how the ecosystem could bounce back to glory.
We reported that Kwon had proposed a reset of the network to 1 billion tokens which would be shared amongst old and new LUNA and UST holders while a substantial part would also be kept for the community’s continued growth.
This might have played a role in renewing interest and trust in the project based on the reactions trailing its price rise on social media.
According to King SoloBTC, the crash of the coin
could actually be a good time to buy more of your high conviction crypto on a discount. Wealth is created during bear markets, not bull markets.”
This view was also shared by Musa Alhassan on Twitter who simply said “Terra money 💰 is here to stay in sha Allah.”
However, there are some who remain unconvinced about the coin making a revival as they said the new investors have learned nothing and people are ready to gamble again.