Luna Foundation Guard that makes sure UST stablecoin is stable is currently having tough times in keeping it peg to 1-USD. Infact, UST has a whopping 24% in value when compared to USDT and BUSD which are two very popular stablecoins out there.
UST is currently trading at 0.77 to a dollar. This means even if you thought you were safe by holding a stablecoin like Luna-based UST, you actually lost 24% in value overnight. So, it is clearly a sad day for those believing in stablecoins.
Outlet Finance has announced that UST team will soon be making use of their BTC reserves to bring it to 1:1 so that is again stable.
Another issue users are facing is delayed deposits. Binance has announced it temporarily suspended deposits of both LUNA and UST tokens, both of which make use of LUNA network. Binance say they were forced to do this due to colossal pending withdrawal transactions, which caused network to congest.
So is this a rugpull by Luna Foundation Guard? Absolutely not. The team is still tweeting out via its Terra UST and Luna twitter handles. Had they rugpulled, they would have deleted their twitter accounts already.
We believe both Luna and UST tokens will bounce back once their team starts selling their BTC for UST.
Update 5/12/2022 – As much as we wanted both Luna and UST to come back, things did not turn out great for holders. Binance has already announced that they will be retiring Luna’s margin contract.