Will the LUNA Crypto Recover? What Analysts Are Saying About the Future of Terra.
- As Terra (LUNA-USD) prices continue dropping, investors might be convinced this is the end of the LUNA crypto
- Founder Do Kwon says developers are working diligently to right the network
- Analysts are torn over whether LUNA prices will ever recover
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It’s difficult to have faith in Terra at this point. The network is the talk of crypto bulls and crypto bears alike in the face of a major price meltdown this week. Those still invested are either buying in while prices are incredibly low, or they’ve lost so much they are just hoping for a miracle. Is LUNA going to come back from this?
Do Kwon, the founder of the Terra network, sure seems to think so. Kwon has been trying to assuage investors since the project began to seriously tank. He is doing this through the developers’ three-pronged approach to salvaging the product.
The first two parts of the plan involve a large TerraUSD (UST-USD) burn, in order to stabilize the token back at $1. Over 371 million UST on the Ethereum (ETH-USD) network will be burned, as will all UST remaining in the Terra community pool. The third prong of this plan involves staking 240 million LUNA to stabilize governance and keep a whale from seizing control over the network.
Atop these plans, the developers are also taking on a community proposal to increase the burn rate of UST. Moreover, they temporarily halted the blockchain completely, freezing all unsettled transactions. This was to prevent users from taking advantage of the low price of LUNA and buying it all up at once.
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