It has been nearly two weeks since Terraform Labs cryptocurrency LUNA and algorithmic stablecoin Terra USD (UST) imploded, bringing down crypto markets.
There have been public talks of both the creator of the project, Do Kwonand entities associated with it on the next steps that will attempt to revive the Terra ecosystem. But within Luna Foundation Guard (LFG), there have been almost no talks between Kwon and his team of advisors, and UST is “virtually defunct at the moment,” Jonathan Caras, an LFG board advisor, told Marketingwithanoy. (LFG used to be Terra’s Singapore-based non-profit organization dedicated to protecting UST.)
“It’s been pretty quiet,” said Caras, one of the four advisors to Kwon’s LFG. According to Caras, there has been no communication with the advisors since May 7, when UST began to deviate from its (what should be) stablecoin value, Caras said.
LUNA is down more than 99% from its peak to $0.0001398, or less than a hundredth of a cent, while UST fell 92.1% to $0.079 from its $1 peg, according to CoinMarketCap data on Friday. UST’s market cap plunged from an all-time high of nearly $19 billion to less than $1 billion.
“There was a lot of brainstorming and talking [that day]but since then there hasn’t been much of a conversation, or at least one I’ve been invited to,” said Caras.
The advisors’ relationship at LFG was more of a “thought leaders” than operators for UST, Caras noted. They weighed in on designing or managing the mechanics of UST’s transition from a purely algorithmic stablecoin to a semi-backed, mixed basket of crypto assets, so the talks focused more on the technical aspects as opposed to actual tactics. what he didn’t. have no view of it, he added.
“The truth is I found my information [about this situation] on Twitter like everyone else,” said Caras.
One of LFG’s other advisors, Kanav Kariya, who is also the president of Jump Crypto, tweeted the following on May 13: “I’m not quite sure what to say. This week has been hell for our entire community. I know we’ll come out of this stronger, but that doesn’t make it any easier.”
While LUNA and UST plummeted in value, Caras believes Terra’s ecosystem is far from over. Now Terra has a live board proposal for community members to vote on, which involves renaming the existing network Terra Classic and LUNA Classic (LUNC) and the “rebirth a new Terra blockchain”, Kwon tweeted on May 18.
Terra had – and still has – a huge community, known as LUNAtics, who believe in the ecosystem’s long-term success even if UST died. “I’m a believer in the longevity of the industry,” Caras said.