On Wednesday, the implosion of the TerraUSD stablecoin kindled wide-spread panic in the crypto space. But 24 hours later, things have calmed down significantly.
Terraform Labs halted, restarted and then halted again its Terra blockchain in the wake of the collapse of TerraUSD and its related Luna token. Developers who work on the blockchain said in a tweet posted to their verified Twitter account that the second halt was intended to enable them to “come up with a plan to reconstitute” the network. Both TerraUSD (UST), the algorithmic stablecoin that lost and never regained its 1-1 peg to the US dollar, and the associated Luna token were trading near zero at the time of the second halt.