Terra Temporarily Halts Network as Team Scrambles for Solutions

The official Terra Twitter account tweeted yesterday that the network blockchain had been halted as the team scrambled for solutions to their predicament. The Twitter handle noted: “The Terra blockchain was officially halted at a block height of 7603700. Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.” That said, the network has since been reopened, and block production has resumed.

At press time, LUNA trades at a heart-wrenching low of $0.00001 after shedding another 93% today. UST currently trades at $0.1110, decimating its previous low at $0.2000. LUNA has now become a shell of its previous self, as it dropped to the number 229 spot on the top crypto ranking from its previous top-seven position. Meanwhile, UST also fell from its top 15 ranking to the number 32 spot this morning.

After the network update, the Terra team explained: “Validators are applying a patch to disable further delegations, and they will coordinate to restart the network in a few minutes.” Commenting on the intense pressure on the network, the team noted: “The prevailing peg pressure on UST from its current supply overhang is rendering severe dilution of LUNA,” adding: “The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads. To expedite this goal, several measures are being taken. First, the current Prop 1164 will expand the base pool size and accelerate the burn rate of UST – helping deflate on-chain spreads.”

Terra Tokens Delisted from Binance

Terra’s situation worsened this morning after Binance made good on its warning to delist both LUNA and UST at 8:30 am UTC today. Bybit and eToro have taken similar actions, delisting both cryptocurrencies from their platforms.