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Following a halt of around nine hours while validators plotted a way out of its ongoing crisis, the Terra blockchain has resumed activity.
Slightly after 3:00 UTC Friday the blockchain was stopped at block 7607789. Blocks 7607790 and 7607791 then followed at around 11:27 UTC.
Terraform Labs, the company behind the Terra ecosystem, tweeted that network validators had disabled on-chain swaps and Inter-Blockchain Communication (IBC) protocols have been closed. It told users to “bridge off-chain assets, such as bETH, to their native chains.”
LUNA was priced at around $0.008 at the time the network was halted, and terraUSD (UST) was at $0.19. At time of writing, both assets were priced at $0.0001525 and $0.1577, respectively, according to CoinMarketCap.
In a Twitter thread, Terra creator Do Kwon to be “heartbroken” about his creations dying out.
Kwon, founder of Terraform Labs – creator of the LUNA governance token, TerraUSD stablecoin and various other cryptocurrencies – said he spent the last several days calling various community members about the tokens’ losing all of their value.
He tweeted:
“I still believe that decentralized economies deserve decentralized money – but it is clear that $UST in its current form will not be that money.”
Commenting on the crash of the UST algorithmic stablecoin, Fernando Martinelli, CEO at Balancer Labs, an automated market maker in the DeFi sector, said:
“There has always been a question mark within that third category of algorithmic stablecoins.
You can’t tell if an algorithmic stablecoin has no substance or is not well designed. There are some that are algorithmic that are collateralized to a high degree, but not over-collateralized.”
Executives of Issuers of the other prominent stablecoins, Circle (USDC) and Tether (USDT), are coming out assuring the market that their coins are different to Terra’s coin.
Tether’s Chief Technology Officer, Paolo Ardoino, said on Twitter Spaces:
“We would like to see a categorization of stablecoins, where there are of course the centralized stablecoins, and Tether is the biggest one, and there are algorithmic stablecoins.”