The validators of Terra blockchain have seized all activities on the network until further notice. The step is to respond to the ongoing LUNA and UST crash incidents. Recently, the UST token fell more than 94% in market value; meanwhile, LUNA has crashed back to one cent. At the moment, the developers of Terra have halted all transactions and activities on the blockchain.
The developers explain that the step has been taken to stop the ongoing governance attacks on the Terra Chain that can set off a hyperinflation period for LUNA and reduce the cost. The organization behind Terra Chain, known as Terraform Labs, posted an update about the suspension of activities on Twitter.
Terraform Labs is the development organization that is working on fixing the issues on the network and trying to re-establish native tokens and pegs. To this end, the ill-fated investors of UST who did not have a chance to move their investment and lost their savings within a matter of 24 hours are waiting eagerly to hear about some viable solution from the validators.
Investors are Waiting for Some Good News
As per the tweet, the Terra Chain halted its operations at 7603700 block height. Meanwhile, some investors are positive that they might be able to hear some good news soon. The developers at Terra also posted a patch that revoked delegations moving ahead of the validators upon restarting the network. The developers further explained that a system reboot would happen when the 2/3 voting majority is online again.
According to the media outlets, the biggest downfall of the Terra governance attack is seen in the UST token that lost its peg to the USD last Saturday and has been struggling to fight off its massive volatility since then. Meanwhile, the market value of the LUNA token is also crashed to near zero. Under these circumstances, the cost of attacking the network has increased dramatically.
After the ongoing destruction, the reminder market cap for the Terra chain was set at $400 million; before the crash, the market cap of Terra accounted for $30 billion, with LUNA trading for $80 per unit. LUNA has become one of the most tragic stablecoin downfall incidents in crypto market history. Terra was pitied against one of the largest layer one blockchain solutions like Ethereum, Solana, and Avalanche. However, it has now joined the list of the top stablecoin catastrophes.