The Terra blockchain started activity after being stopped for over nine hours amid an ongoing crisis. The blockchain ecosystem’s breakdown led its stablecoin UST to crash. This comes at a time when the crypto market crashed as the sell-off escalates.
Stablecoins are cryptos whose price remains stable even if the cryptocurrency market sells off. The coin operates on an algorithm that balances the demand and supply. Stablecoins are the best to support lending and borrowing due to their non-volatile nature.
The pause means no new blocks can be created on the blockchain network. So, cryptocurrency owners were not able to move their Terra assets until the blockchain was unfrozen. The firm tweeted that the Terra validators have decided to pause the Terra chain to obstruct governance attacks after severe $LUNA inflation and a notably decreased cost of attack.
Following the restart of the blockchain, Terra blockchain asked the (cryptocurrency-miners) validators to disable on-chain swaps and IBC channels. The blockchain firm has motivated users to bridge off-chain assets like bETH, to their chains.Share & like