Binance's CZ "disappointed" with Terra Team's response to the crash
Terra's Death Spiral
Terra has been in a death spiral lately as UST lost its peg and LUNA fell below 1 cent due to an over-inflated token supply. The crash, which destroyed nearly $30 billion in value in just one week, has been hailed as one of the most significant events in crypto history.
The development company behind Terraform Labs Terra has come under fire in recent days for its reaction to the event, which avoided measures such as limiting LUNA minting. Terraform Labs released a list of emergency procedures on Thursday, but LUNA has dropped it. Terra validators then temporarily suspended the chain to avoid a governance attack when its market cap dropped, only to re-suspend it a few hours later.
Do Kwon Terraform Labs' outspoken CEO has taken much of the blame for the disaster, in part because he has previously spoken publicly about the project's great promise. Kwon gave an emergency public speech to his Twitter followers on Wednesday, claiming that "the return of Terra will be a sight to behold." Since then, he has remained silent.
At the time of publication, UST was still trading below its peg at about $0.08. LUNA is currently worth less than a penny, and the market value of the project is estimated to be about $6.5 million.