Different platforms, Polygon, Fantom, and Juno, are offering to assist Terra recover from crashed projects that reportedly led to the coin losing more than 99.8% in its value. The blockchain technology-powered systems are placing bids on LUNA’s creators’ projects.
TerraUSD crashed in the second week of May, and lost over 99.8% of its price for its associated LUNA coin. The stablecoin’s network reportedly stopped two times during the period to peg the loss. However, several functions still remained disabled after restarting the system.
The crash reportedly led to a loss of a market capitalization from $31+ billion to about $0.4 billion. Due to the crash in market capitalization, different software developers responsible for Terra’s applications have reportedly left Terra for other networks.
Three Networks Offer Support for Terra
Consequently, different other blockchain developers reach out to Terra to replace the massive emigration of teams from Terra’s networks. The blockchain technology-powered platforms are reportedly offering support in form of liquidity and other assets in their care.
One of the networks offering support for Terra’s offerings is Polygon Studios, a studio that focuses on non-fungible tokens, Metaverse, and blockchain-powered games. The Chief Executive Officer of Polygon Studios, Ryan Wyatt, announced via the studio’s Twitter account that they were partnering with Terra to assist it in transferring its projects to the Polygon’s chain.
Wyatt says that his platform would invest capital and other resources to welcome Terra’s technical team to Polygon Studios. Apart from Polygon Studios, Fantom, a blockchain company, declared that it would provide grants, ecosystem, and advertising services to any Terra’s offerings seeking another blockchain network.
Juno is also offering its services to the TerraUSD stablecoin manufacturer. Juno, a smart contract platform based on the blockchain network, submitted a proposal requesting for approval to float about $7 million worth of JUNO tokens in support of Terra’s projects if it moves to Juno’s software.
The proposal reportedly observed that different projects from Terra had indicated interests in joining Juno’s blockchain technology-powered chain. Moreover, Juno’s blockchain network reportedly has a similar structure to Terra. For instance, both networks run on the Cosmos system. Other blockchain software have also offered assistance of Terra’s projects on their networks.
South Korea Tightening Investigations into Causes of Luna Crash
Meanwhile, South Korea says it’s strengthening its investigation into the causes of the crash in Luna’s worth. The country’s government learned about the crisis that crashed the stablecoin’s value by over 99.8%.
Several volatile trading activities took place over several market places due to the plunge in the asset’s price. Moreover, individual investors and two gaming companies reportedly recorded significant losses in the crash.
Terra also declared through their Twitter channel that they would conduct a post-mortem on the causes of the crisis. It further warned its users to stay security-conscious and not listen to any information from external sources other than its official Twitter page on the LUNA project.
