Developers behind the TerraUSD stablecoin have decided to ditch the token in favor of creating a new blockchain and a new digital asset, in a strategy taken weeks after the cryptocurrency’s collapse.
Unlike other large stablecoins supported by other assets, TerraUSD’s value was derived by complex algorithmic processes linked to another paired token, called Luna. Both have lost almost all of their value since TerraUSD, known as UST, lost its 1:1 parity with the dollar this month.
Under the recovery plan for the Terra ecosystem, the developers decided to create a new Terra blockchain with a recovered Luna token.
The original blockchain will be called Terra Classic, and the original Luna will be called Luna Classic.
Terra blockchain supporters will distribute the new Luna token to Luna Classic and UST holders. In a statement on Twitter, Terra stated that it will work with cryptocurrency exchanges Binance and Bybit to distribute the new assets to the people who stayed with Luna Classic and UST.
“Our strength will always be our community and today that is the strongest signal about our resistance. We cannot wait to get back to work on building the future of money.”
Before the collapse on May 9, TerraUSD was worth over $18.5 billion and was the 10th largest cryptocurrency. The current market cap is around $1 billion.
Source: CNN Brasil
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