LUNA issuer Terra halts blockchain after a week of losses

LUNA issuer Terra halts blockchain after a week of losses

According to Terraform Labs, the price of LUNA is too low to prevent governance attacks.

The Terra blockchain was halted after the value of the Terra token (LUNA) fell below 2 cents on Thursday.

  • According to a tweet from Terraform Labs, the company behind the Terra ecosystem that includes the LUNA governance token and several algorithmic stablecoins, the price of LUNA fell too low to "prevent governance attacks," citing LUNA inflation as a factor. The price of LUNA fell from nearly $120 in early April to 1 to 2 cents on Thursday.
  • The price of LUNA fell more than $80 in three days. TerraUSD (UST), one of the paired stablecoins, broke its peg on Monday and fell to 37 cents by press time.