Terra

Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic. Due to limited liquidity, LUNA sell orders will not be accepted from 10:51 PM - 11:11 PM CT. Please submit your orders outside of this window.

On Thurs. May 25, Terraform Labs announced that the Terra community had approved the creation of a new blockchain, Luna 2.0. The creation of this new chain is a response to unprecedented volatility on the Luna 1.0 chain, which caused the price of the original LUNA and UST to collapse almost to zero. 

As part of the migration, the former asset LUNA will become Luna Classic, or LUNC. A portion of LUNA holders will be eligible to receive an airdrop of the new token (LUNA), per the terms outlined by Terraform Labs.

The new Terra blockchain will utilize the new LUNA, and will not include the UST stablecoin. 

On 9 May, after nearly 18 months of steadily holding its value against the US dollar, the so-called stablecoin TerraUSD (UST) became unpegged. The uncoupling triggered a cascade response that ultimately crashed UST and the Terra (LUNA).

TerraUSD (UST) is a stablecoin, which means it is a cryptocurrency pegged to a fiat currency. In this case, it is designed to be pegged to the US dollar. Stablecoins are intended to allow investors to hold crypto assets with less volatility, and trade a dollar equivalent without needing to cash out their positions. 

UST is considered an algorithmic stablecoin because instead of being backed by assets such as cash or cash equivalents, it is supported by on-chain code that facilitates a change in the supply and demand between UST and LUNA.

LUNA is the cryptocurrency that works in unison with UST in an effort to keep UST in 1:1 parity with the US dollar. One dollar of LUNA can always be converted at a 1:1 ratio to 1 UST. 

For example, if LUNA is trading at $10, then it can be redeemed for 10 UST, and 10 UST can be redeemed for 1 LUNA. If UST rises above its $1 peg to $1.01, then traders can swap 1 USD of LUNA for 1 UST. This trade burns 1 LUNA and mints 1 UST, which can then be sold for 1.01 USD. 

If UST rises to $1.02, then traders can sell for a 2 cent profit, and so on. 


In theory, increasing the supply of UST and lowering the supply of LUNA brings the price of UST back down until it reaches $1. Conversely, if UST drops below the $1 peg, then traders will be incentivized to buy 1 UST for 0.99 USD, which can then be swapped for 1 LUNA. 

This move burns UST and mints LUNA, sending UST higher towards the $1 peg.

UST lost its peg to the dollar starting on May 8th following large withdrawals of UST from Terra’s DeFi protocol Anchor. UST fell quickly, and struggled to regain its peg because the burning of UST and minting of LUNA couldn’t keep up. 

UST descended rapidly as the prolonged de-pegging led to uncertainty and a snowball effect of larger withdrawals. 


A significant share of circulating UST was locked on Anchor, a Terra-based lending and borrowing protocol that paid users 19.5% to stake UST. 

The LFG used up about $2.9 billion of its bitcoin reserves in an unsuccessful attempt to revive UST. 

WSJ 
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Bloomberg

*This content is for educational purposes and is not investment advice.

Luna Classic (Former Terra)

Montenegrin authorities arrested the Terra founder in March for allegedly attempting to travel with fake documents.

Do Kwon's Attorneys Propose $437K Bail, Deny Falsified Travel Documents Charges in Montenegro

According to a local report, South Korean prosecutors have been given the green light by the Criminal Division of the Seoul Southern District Court to seize assets owned by Do Kwon, the co-founder and former CEO of Terraform Labs. The report discloses that a total of 233.

Seoul Court Greenlights Seizure of Do Kwon's Assets Worth $176 Million

South Korean authorities are looking to extradite embattled Terra (LUNA) founder Do Kwon months after he was found in the Eastern European nation of Montenegro.

Prosecutors Seek To Extradite Embattled Terra Founder Do Kwon to South Korea: Report

South Korean prosecutors are pushing for him to face criminal charges in his home country, claiming it would be best for victims.

Terra's Do Kwon Caught in Jurisdictional Battle Between US and South Korea

In the wake of the recent legal action against ten associates of Terraform Labs, which included the co-founder Shin Hyun-seong, known to many as Daniel Shin, it appears that prosecutors from Seoul are convinced that Terraform Labs and co-founder Do Kwon are still in possession of a considerable sum of money, specifically 130 billion won

Seoul Prosecutors Believe Terra Co-Founder Do Kwon Still in Possession of $100 Million Held in Swiss Bank Account

Terraform Labs (TFL) and its co-founder Do Kwon have requested the dismissal of the charges brought against them by the U.S. Securities and Exchange Commission (SEC).

Terra (LUNA) Founder Do Kwon Asks Court To Dismiss SEC's Securities Fraud Charges

Recent local reports have brought to light that Shin Hyun-seong, also known as Daniel Shin, co-founder of Terraform Labs, has been indicted by the Seoul Southern District Prosecutors' Office on charges of fraud.

Report: Terraform Labs Co-Founder Indicted on Fraud Charges in South Korea

South Korean prosecutors on Tuesday indicted the co-founder of the blockchain platform Terraform Labs, Daniel Shin, for fraud and other charges, the Yonhap news agency reported.

South Korea prosecutors indict Terraform Labs co-founder - Yonhap

The Terraform Labs founder also called Terra's failed stablecoin a currency and said he wasn't given sufficient warning about alleged SEC violations.

Do Kwon Seeks To Dismiss SEC Charges as South Korea Rules LUNA Is Not a Security

Lawyers for Do Kwon, founder of the defunct crypto issuer Terraform Labs, have requested a U.S. court to dismiss charges brought against him by the SEC, citing lack of jurisdiction among other reasons, according to court filings from Friday. Kwon has been on the run since the collapse of his cryptocurrency enterprise in May 2022 and was recently arrested in Montenegro for attempting to travel with falsified documents.

Crypto Founder Do Kwon's Legal Team Challenges SEC's Authority To Regulate Digital Assets

The SEC cannot regulate digital assets involved in the case as the UST stablecoin is a currency, not a security, lawyers for the disgraced crypto executive said.

Terra's Do Kwon Wants SEC Charges Dismissed, Court Filings Show

In a court filing last Friday, lawyers for Terra (CRYPTO: LUNA) cofounder Do Kwon asked a judge to dismiss the U.S. Securities and Exchange Commission's lawsuit against the disgraced crypto CEO, asserting that the regulatory agency's accusation of securities fraud was unfounded because the stablecoin at issue is a currency, not a security. Kwon's attorneys said U.S. law prohibits regulators "from using federal securities law to assert jurisdiction over the digital assets in this case," according to Bloomberg.

Do Kwon's Lawyers Dismiss SEC's Securities Fraud Allegation, Claims Agency Is Using Antiquated Laws To Regulate Cryptocurrencies

Attorneys defending the co-founder of Terraform Labs, Do Hyeong Kwon, also known as Do Kwon, have presented their argument that says the U.S. Securities and Exchange Commission (SEC) has no jurisdiction in the matter. The legal team asserts that U.S.

Do Kwon Challenges SEC's Jurisdiction in Multibillion-Dollar Crypto Securities Fraud Case

Disgraced crypto entrepreneur Do Kwon is embroiled in new legal trouble as authorities in Montenegro formally charged him with a case of forgery. According to a new report from Bloomberg, Montenegrin prosecutors filed an indictment for the Terraform Labs co-founder and his chief financial officer Han Chang-Joon for allegedly forging personal documents.

Montenegro Prosecutors Slap Disgraced Terra (LUNA) Founder Do Kwon With Forgery Charges: Report

Nearly a month after Do Kwon's arrest by Montenegro law enforcement, local prosecutors have now indicted the co-founder and CEO of Terraform Labs. The decision to indict Kwon is likely to delay attempts to extradite him to South Korea and the United States where he faces several charges.

Report: Terraform Labs Co-Founder Do Kwon Charged by Montenegro Prosecutors

Prosecutors have sought to extend the detention period for Kwon along with his chief financial officer Han Chang-joon

Terraform Labs Co-Founder Do Kwon Faces Montenegro Indictment: Bloomberg

The Terraform Labs co-founder was arrested while trying to leave Montenegro on a private jet last month.

Do Kwon charged with using false passport in Montenegro: DL News

Serbian authorities have confiscated a €2 million luxury apartment in Belgrade where Terraform Labs founder Do Kwon sought refuge during a six-month pursuit, according to Serbian prosecutor Branko Stamenkovic. Stamenkovic told DL News, “The police were on the ground to search the apartment and premises based on the order of the higher court in Belgrade at the proposal of the prosecution for a high-tech crime, and the apartment was temporarily confiscated based on the order of the prosecution.

Do Kwon's Lavish Serbian Hideaway - Inside The Crypto Magnate's Secret Sanctuary

A judge rejected Do Kwon's request to block SEC access to documents related to Terraform Labs' activities in Singapore.

SEC Granted Access to Singapore Records for Terra's Do Kwon

Do Kwon, founder of Terraform Labs, allegedly transferred 9 billion won ($7 million) to South Korean law firm Kim & Chang just before the collapse of the crypto platform in May 2022, according to a new report.

The $7M Transfer Do Kwon Reportedly Made To Law Firm Just Before Terraform Labs' Downfall

South Korean prosecutors confirmed a report that Kwon sent $7 million to a local law firm in the months leading up to his venture's dramatic fall.

Do Kwon Retained Law Firm Before Terra's Collapse: Report

Prosecutors investigating failed blockchain firm Terraform Labs have found out that its Singapore office sent millions of U.S. dollars to lawyers just before the crash of its cryptocurrencies. According to Korean media, the transfers suggest that co-founder Do Kwon was aware of the imminent collapse.

Do Kwon's Terraform Sent $7 Million to Law Firm Before Collapse, Report Unveils

The collapse of Terra continues to reverberate in Do Kwon's homeland, but there are signs of progress, CoinDesk's Emily Parker reports.

As Justice is Sought for Do Kwon, South Korea's Crypto Scene Emerges From Terra Luna's Shadow

A recent report has revealed that Terra (CRYPTO: LUNA) cofounder Do Kwon, who was arrested in March for his alleged role in the collapse of the $40 billion Terra ecosystem in May 2022, appears to have converted most of his properties into Bitcoin (CRYPTO: BTC). The disgraced founder allegedly sent his crypto stack to an exchange outside of South Korea, according to Korean media outlet KBS.

Terra Founder Do Kwon Converted All His Assets From LUNA To Bitcoin Just Before His Arrest, Report Reveals

Bitcoin

South Korean authorities have reportedly found that embattled Terraform Labs CEO and co-founder Do Kwon has zero assets in his home country. Local media outlet KBS reports that prosecutors have been tracking the domestic wealth of Terraform Labs executives to collect the profits that they've allegedly accumulated from the Terra (LUNA) ecosystem.

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