Terra's emergency proposal response is poor! The Block Research Director: Temporarily abandon UST to avoid both UST and LUNA going to zero.
In order to rescue UST and continue absorbing market circulation, sacrificing LUNA is the result of Terra's deliberation. As of the deadline, LUNA has fallen to 0.019, a decrease of 99%, ranking it at 278th in terms of market value; UST is at 0.5, with a market value of approximately 7 billion U.S. dollars.
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The Block Research Director: Temporarily Abandon UST to Have a Chance
The Block's Research Director, Larry Cermak, also expressed similar views on Twitter. He mentioned that he has been using LUNA to provide liquidity for UST, causing a significant devaluation of LUNA. However, the bad debts are infinite, and this liquidity will soon be exhausted.
He believes that the only way to find an exit for this tragedy is to temporarily abandon UST, switch to USDT/USDC, focus on developing its public chain ecosystem, and promise to find funds to repay the bad debts of UST. If not, both coins will basically go to zero.
However, Larry Cermak also mentioned that regardless of whether they do this or not, the chances of success are probably very slim. If there is anything left of Terra, they should be committed to protecting user rights.
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