On May 20, the U.S.-based crypto infrastructure company Coinbase Cloud made an official announcement on Twitter to stop giving support to Terra Network.
According to the Coinbase Cloud team, this decision was made in consultation with Terra’s customers and ecosystem participants.
Coinbase Cloud tweets:
1/ Through speaking with customers and ecosystem participants, we are making a tough decision to wind down support for the Terra ecosystem. We are discontinuing support for the existing Terra chain and are not planning to support a potential new Terra chain at this time.
— Coinbase Cloud (@CoinbaseCloud) May 20, 2022
In addition, with speculations of a potential Terra (LUNA) protocol spin-off with a modified minting policy and revised tokenomic design, Coinbase Cloud said clearly that the “proposed” new chain will not be added to its stack of nodes.
Customers and enthusiasts will receive all the necessary support on “how to best roll off Terra” with little impact on corporate operations, according to Coinbase Cloud.
The Terra (LUNA) ecosystem collapsed due to flaws in the tokenomic design of its LUNA/UST balance and significant liquidity withdrawals from Anchor Protocol (ANC).
Terra (LUNA) and TerraUSD (UST) both dropped to near zero; numerous Web3 services stopped accepting connections to Terra (LUNA) nodes and closed pairs with LUNA and UST.
Do Kwon of Terraform Labs proposed a number of concepts to reconstruct the Terra (LUNA) blockchain. However, several Web3 giants have spoken out against his upcoming plans.
