Do Kwon, the founder of Terra, has a proposed plan to restore peg to the algorithmic stablecoin, UST, which has dropped to 66 cents. While the official plan has not yet been released, rumors suggest that Jump Capital, Celsius, and Jane Street committed to a $1.5 billion raise with Almeida expected to add a $1 billion raise. The plan would involve diluting the Luna circulating supply by 20%, causing bearish sentiments from the Luna community. However, if successful, this plan could restore peg to UST and give confidence to the market.
The Solution to FIX UST in the Crypto Market
Cryptocurrency has always been a volatile market, but lately, the fear has been growing because of the issue with UST. This algorithmic stable coin has fallen below its peg, causing a lot of volatility and uncertainty in the market. However, there might be a solution to fix UST and restore the peg, which could potentially calm down the market.
The Plan to Restore the Peg
Dokuan has come out with a plan to restore the peg of UST, but he hasn’t made it public yet. However, leaks have been coming out, and some people already have an idea of what the plan might be. According to sources, the plan involves a one-billion-dollar raise, giving a 50% discount to LUNA spot with a one-year lockup and monthly linear vest over one year. Jump Capital Celsius and Jane Street have already committed, and Almeida hasn’t yet. The total commitments so far have reached 700 million up to this morning.
The plan might also involve inflating the supply by about 20%, which could restore the peg and give people confidence that the market is stable. However, this plan might not sit well with the LUNA community, as it could cause a lot of selling pressure in the coming year.
The Impact on the Crypto Market
If the plan does go through, it could bring the UST peg pretty close to a dollar, restoring some stability in the market. It could also potentially calm down the fear and uncertainty that has been growing in the market lately. However, selling pressure might occur as the market nears the peg, so it’s best to keep an eye on the situation and make informed decisions.
In conclusion, the solution to fix UST and restore the peg might be on the way, but nothing is set in stone yet. It’s best to keep an eye on the situation and stay informed before making any decisions. The crypto market might continue to be volatile in the near future, but solutions like this could potentially calm down the market and restore some stability.