- As Terra (LUNA-USD) prices continue dropping, investors might be convinced this is the end of the LUNA crypto
- Founder Do Kwon says developers are working diligently to right the network
- Analysts are torn over whether LUNA prices will ever recover
It’s difficult to have faith in Terra at this point. The network is the talk of crypto bulls and crypto bears alike in the face of a major price meltdown this week. Those still invested are either buying in while prices are incredibly low, or they’ve lost so much they are just hoping for a miracle. Is LUNA going to come back from this?
Do Kwon, the founder of the Terra network, sure seems to think so. Kwon has been trying to assuage investors since the project began to seriously tank. He is doing this through the developers’ three-pronged approach to salvaging the product.
The first two parts of the plan involve a large TerraUSD (UST-USD) burn, in order to stabilize the token back at $1. Over 371 million UST on the Ethereum (ETH-USD) network will be burned, as will all UST remaining in the Terra community pool. The third prong of this plan involves staking 240 million LUNA to stabilize governance and keep a whale from seizing control over the network.
Atop these plans, the developers are also taking on a community proposal to increase the burn rate of UST. Moreover, they temporarily halted the blockchain completely, freezing all unsettled transactions. This was to prevent users from taking advantage of the low price of LUNA and buying it all up at once.
Will the LUNA Crypto Recover? Analysts Can’t Decide.
While the LUNA crypto is now trading at only a fraction of 1 cent, investors might be throwing their hands up in the air. Can this bailout plan save the Terra network?
Many have their doubts. It seems that most talk about the network online is quite negative, with lots of investors already considering the project dead. The Motley Fool’s Trevor Jennewine is advising investors steer clear of LUNA now, even with its exceptionally low cost. Price predicting websites like CoinPriceForecast and DigitalCoinPrice see no growth opportunities for the network on the horizon either. The two sites predict an end-of-year price of 6 cents and less than 1 cent, respectively, for LUNA.
There are others still with some hope still for the network. Crypto analysis website InvestingCube said that a LUNA crypto price recovery could very well be a possibility. The report suggests that UST returning to $1 could catalyze a LUNA gain, allowing it to regain its footing. Price prediction site WalletInvestor is remaining extremely bullish with its 12-month LUNA prediction. It expects the coin to reach $151 by May 2023. Meanwhile, peer outlet Gov Capital is predicting a $108 price for the coin in the same time frame.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.