Do Kwon, Terra’s co-founder is at the forefront of the recent drop in the value of Luna and the stablecoin TerraUSD, or UST.
Since it was devalued against the US dollar, the UST has experienced a decline in value.
Kwon has been highly criticized for his activities in the ecosystem as well as his failure to act in response to the recent drop in the value of the UST.
Holders of the UST and LUNA tokens have been advised to wait for proposals and updates on the issue.
People have accused Kwon of being detached and unconcerned about the Terra Ecosystem’s decline.
UST has plunged below its usual $1 or $0.99 value to an all-time low, losing more than half of its value at the time of writing. This has rendered its premise of being a stablecoin redundant.
Because of the recent de-pegging incident, the Terra Ecosystem is experiencing the aforementioned issues with the value of its Luna and UST. The Luna Foundation Guard (LFG) said that it would lend $1.5 billion of its bitcoin to professional market makers to protect the UST’s dollar peg.
According to LFG on its Twitter page, “Per the LFG’s mandate, the LFG will proactively defend the stability of the $UST peg and the broader Terra economy, especially under volatility and the uncertainty of macro conditions in legacy markets.”
As a result, the LFG Council has voted to execute the following:
– Loan $750M worth of BTC to OTC trading firms to help protect the UST peg.
– Loan 750M UST to accumulate BTC as market conditions normalize.”
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