Are TerraUSD (CRYPTO: UST) and Terra (CRYPTO: LUNA) really making a comeback?
That depends on who you ask.
Some crypto enthusiasts, particularly we'd imagine those still holding LUNA and UST, are buoyed by the resuce plan put forth by the, erm, stablecoin's founder Do Kwon.
We'll look at that plan shortly.
But first, the reason you may be hearing about a big comeback for Terra's Luna and UST tokens is that both saw their prices surge over the past 24 hours.
Though both have given some or all of those gains back in recent hours.
Image source: Getty Images
How's this for volatility?
Both Terra tokens saw some more wild volatility over the past 24 hours. A speculator's delight, perhaps, with the potential to make, or lose, big bucks in a matter of hours.
But hardly in line with the long-term investing philosophy embraced by The Motley Fool.
Here's what we mean.
Since this time yesterday, UST traded as high as 32 US cents and as low as 7 US cents. It's currently trading for just under 10 US cents.
And remember, this is supposedly the stablecoin that was meant to consistently be worth US$1. Which it more or less was. Right up until that peg snapped as confidence in Terra evaporated two weeks ago, on 12 May.
As for Terra's LUNA, the token which was intended to help the algorithmic UST maintain its peg by enabling people to swap UST for US$1 worth of LUNA at any point, it got absolutely trampled as crypto investors rushed for the exits.
LUNA hit record highs just over two months ago, trading for US$119 on 5 April, according to data from CoinMarketCap.
It's currently trading for 0.017 cents after hitting a peak of 0.020 cents overnight.
That's about as close to down 100% from April's highs as you can get with some US$40 billion having gone up in virtual thin air.
What's all this about a Terra LUNA rescue plan?
Do Kwon is determined to try to get his project – backed by Terraform Labs – back on track.
A rescue measure he put forth, supported by 65% of voters in the Terra community, will see the blockchain split off from the original to be called Terra Classic. LUNA will be rebranded as LUNA Classic (CRYPTO: LUNC). The new blockchain won't support UST.
Existing LUNA holders can expect to receive their Classic LUNC tokens inside the next 24 hours.
Kwon reported that will happen via what's known as an 'airdrop'.
