It is too early to breathe a sigh of relief, but TerraUSD (UST) and Terra (LUNA) are already showing positive movement.
At the time of writing, UST has recorded an increase of more than 50% since midnight last night, from the $ 0.51 level to $ 0.76. But the declining return touched the $ 0.50 zone.
While LUNA looked hard to rise, it traded at $ 0.46 after hitting $ 1.5 early in the morning following a decline to $ 0.7 last night.
Do Kwon and the Recovery Plan
Terra CEO Do Kwon presented the UST and LUNA collapse recovery plan via tweet on the social site Twitter.
It will increase the base pool from 50 million to 100 million Special Drawing Rights (SDRs) and reduce the PoolRecoveryBlock from 36 to 18.
They will also produce UST four times more than usual.
UST's Ability Sculpture
CEO of asset management company, Arca; Rayne Steinberg expressed his confidence in UST, claiming it would be back tied to the US dollar and have a chance to make up for the ‘defeat’ since the beginning of the week:
"For example, we have the opportunity to buy UST at a large discount comparable to the Digital Yield Fund (DYF) and deposit it with the FTX platform which offers 100% annual percentage yield (APY) given the imbalance in the number of buyers/sellers when fears peak."
"Bye!" - Arrington Capital
Crypto investment company Arrington Capital has cleared $ 100 million worth of funds tied to lending and savings platform, Anchor in Terra.
The fund is supported by partners Arrington Capital, and Terraform Labs.
But its founder, Michael Arrington, hopes demand for products based on the fund - UST's 'Risk Harbor Anchor' insurance - is reduced: "We are no longer opening up opportunities for this fund."
Beware, There is SEC Intervention!
Two former Securities and Exchange Commission (SEC) lawyers said the agency was already investigating the UST incident.
This is to be expected because of the DeFi platform, the Mirror protocol has long been under SEC investigation.
Again in April, Kwon claimed stablecoins were not securities, raising questions regarding the statement and the complex situation involving Anchor, and the Luna Foundation Guard (LFG).
The US Treasury has also opened its mouth in the wake of the UST price collapse.
Identities Do Kwon = scammer?
The former Terraform Labs engineer claims Terra founder is apparently Rick Sanchez, the founder of a stablecoin known as Basis Cash (BAC).
BAC was launched in December 2020 on Ethereum.
Its nature is the same as UST which is backed by dollars or other collateral (such as UST and LUNA).
A unit of BAC has hit $ 155 before plunging to below $ 0.10.
The project disappeared from radar after concerns over crypto laws rose.
This speculation has yet to be confirmed, Kwon has also not commented on it.
