Do Kwon hints at a ‘recovery plan’ for UST as LUNA continues to plunge


Evidently, Terra’s ecosystem has been in a bit of a bind lately. The price of its two native tokens, LUNA and UST, have been falling mercilessly on the charts. yesterday’s accident removed 60% and 40% of the respective values ​​of the tokens. With bearish sentiment still prevailing, LUNA is valued at $13.89, while UST stands at $0.804 at press time.

Do Kown to the rescue

The people of the Terra community have been quite concerned about the state of the ecosystem. The founder of Terraform Labs, Do Kwon, used Twitter to make an announcement of an announcement. He himself managed to provide a certain respite to the people of space.

The executive proclaimed that he is “close” to announcing a turnaround plan for UST. He asked people to “stand your ground” and thanked them for their support. Kown also noted that he did not intend to stand in the midst of chaos and justified his decision to choose to do so by stating that he needed a “razor-sharp approach” to deliver.

Posting another “coming closer” update a few hours later, Kwon tweeted:

Through the previous tweets, the executive did not clarify the exact plan. However, it is worth remembering that the LFG Board voted to deploy $1.5 billion in capital to allay market concerns around UST on May 9th. The ulterior motive for such a move was to significantly strengthen liquidity around the UST parity. Back then, Kwon had stated:

“Watch in the coming days not if LFG chose to deploy reserves, but how.”

In fact, he also stated the same thing in another tweet. So Kwon’s larger recovery plan may include more than just reserve funds.

Community reactions

Crypto Twitter users rarely pass up an opportunity to investigate ecosystem fallacies. Something similar has been happening lately as well.

Peter Schiff, for example, flatly said that the “Luna boys” do not understand the essence of the “stability” of stablecoins. He tweeted:

In particular, about 5 weeks ago, in early April, LUNA reached a high of $120. However, earlier in the day, this token created a new local low of $13. Due to the roughly 90% drop in value in such a short period of time, people started derisively claiming that LUNA would be downgraded to $1 and take on the role of a stablecoin.

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