TerraUSD’s market worth was right down to $1.3 billion from almost $19 billion earlier this yr.

TerraUSD had a catastrophic meltdown final week amid the broader market selloff, falling nicely under its $1 worth. The collapse put strain on the value of bitcoin and different cryptocurrencies, and erased the worth of TerraUSD’s sister token, known as Luna. As a so-called algorithmic stablecoin, TerraUSD used Luna to maintain its worth at $1.

On Monday, Luna was buying and selling down 15% at $0.0002, in line with CoinMarketCap. Its complete market worth was about $1.4 billion on Monday, in line with CoinMarketCap. Earlier this yr, Luna crested at $41 billion.

On Monday afternoon,

Do Kwon,

the token’s founder, outlined what he was calling a revival plan for Terra. The crux of the plan concerned what is named a “fork” in software program phrases—principally taking the present code and beginning over with an up to date model.

The brand new model would get rid of the algorithmic stablecoin, and would distribute 1 billion tokens of a brand new model of Luna to present Luna and TerraUSD holders and builders.

Additionally on Monday, the nonprofit Luna Basis Guard, which managed the reserve fund that backed the stablecoin, outlined the remaining reserves left after TerraUSD’s collapse. Amongst its property, the group has 313 bitcoins, price about $9.3 million at present costs.

On Might 7, it had 80,400 bitcoins, price roughly $3.5 billion. The inspiration bought many of the bitcoins to defend the TerraUSD peg, the group stated.

Total, the group stated it nonetheless had about $106 million in property that it’ll use to compensate remaining holders of TerraUSD, starting with the smallest holders. It didn’t present specifics on how this compensation would possibly work.

The strikes didn’t have a lot of an impact within the wider crypto markets. Not one of the prime 20 cryptocurrencies have been rising on Monday afternoon, in line with CoinDesk. Bitcoin fell 1.8% at $29,737, and ether fell 3.1% to $2,021.

The downdraft in crypto markets has attracted scrutiny from regulators within the Biden administration, who’ve been trying to develop insurance policies to control the asset class.

“The truth that we’ve got this across-market meltdown due to a single stablecoin…must be a lesson for what doubtlessly might occur,”

Rostin Behnam,

head of the Commodity Futures Buying and selling Fee, stated in a CNBC interview Monday. He cited the potential for a “knock-on impact to the standard property and conventional markets.”

Securities and Trade Fee Chair

Gary Gensler

warned traders Monday that crypto markets are “a extremely speculative asset class” that lack the disclosures that issuers of equities or debt present.

—Paul Kiernan contributed to this text.

Write to Paul Vigna at paul.vigna@wsj.com