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 
Decrypt 
Bloomberg

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

Luna Classic (Former Terra)

The Terra founder was set to be extradited to the U.S. but an appeal means he will for the time being stay in Montenegro.

Terra Founder Do Kwon Avoids Extradition to US—For Now

On Tuesday, Montenegro's appeals court overturned the extradition request for Terraform Labs co-founder Do Kwon. This reversal follows reports that Justice Minister Andrej Milovic had informally agreed to the extradition.

Montenegro Appeals Court Overturns Extradition of Terraform Labs Co-Founder Do Kwon

The Appellate Court at Podgorica in Montenegro has overturned a previous ruling by the High Court regarding Terra Labs (CRYPTO: LUNA) co-founder Do Kwon's potential extradition, citing issues in the legal process and a lack of clear reasoning. This decision follows a complaint raised by Kwon's legal defense team, Bloomberg reported.

Do Kwon's Extradition Twist: This Court Overturned A Ruling On Terra Labs Co-Founder

The Appeals Court council found that the decision was fundamentally flawed due to significant violations in the legal process.

Do Kwon extradition approval canceled by Montenegro court

A previous decision that legal requirements for extradition had been met was rejected by the country's Appeals Court.

Do Kwon Successfully Appeals Extradition Decision by Montenegro Court

Do Kwon, the ex-CEO of Terraform Labs, is set to spend two months in Montenegro custody after the country's High Court moved his release date to Feb. 15, 2024. While Do Kwon reportedly prefers being sent to South Korea, Montenegro's justice minister is said to be leaning towards sending him to the United States.

Report: Montenegro High Court Extends Do Kwon's Detention by 2 Months

Terra (LUNA) founder Do Kwon is staying in Montenegrin custody for at least two more months at the request of the United States and South Korea.

Do Kwon Must Stay Two More Months in Montenegro as Authorities Extend Custody Period: Report

The detention of Terraform Labs co-founder Do Kwon in Montenegro has been extended for two more months, until Feb. 15, according to court spokeswoman Marija Rakovic. This decision by the High Court in Podgorica comes in response to requests from both the United States and South Korea, where Kwon faces charges linked to the collapse of TerraUSD, an algorithmic stablecoin, in 2022, Bloomberg reported.

Do Kwon's Montenegro Detour Gets 2-Month Extension, Extradition Decision Pending

Believed to be responsible for the TerraUSD stablecoin disaster, Do Kwon's detention in Montenegro has been extended until mid-February.

Do Kwon detention extended in Montenegro after report of likely extradition: Bloomberg

The Balkan nation Montenegro is reportedly looking to extradite disgraced Terra (LUNA) founder Do Kwon to the United States.

Montenegro Primed To Ship Disgraced Terra (LUNA) Founder Do Kwon to US To Face Fraud Charges: Report

Bitcoin

From Bitcoin hitting $43K to Jamie Dimon voicing his opinions about Bitcoin again, here is a 4-minute breakdown of everything important that happened in crypto this week.

Week in Crypto: Bitcoin Hits $43K, Bitcoin Ordinal's Future Uncertain, Do Kwon May Face Extradition

From Robinhood launching crypto trading in Europe to LayerZero confirming its token airdrop, here is a 2-minute breakdown of everything important that happened in crypto today.

What Happened in Crypto Today: Do Kwon's Going to the States?

According to a Wall Street Journal report on December 7, Terraform Labs co-founder Do Kwon will be extradited to the United States.

Montenegro Plans To Extradite Do Kwon to the United States

Terraform Labs' co-founder, Do Kwon, is on the brink of extradition to the United States from Montenegro. This development follows a decisive ruling by a high court and the endorsement from a top official.

Report: Terraform Labs Co-Founder Do Kwon to Be Extradited to the US

The blowups of his UST and LUNA tokens fueled a crisis that gripped the whole crypto industry in 2022, causing losses that reverberated far and wide.

Do Kwon Faces Extradition to U.S. for Charges Tied to the TerraUSD and Luna Collapse: WSJ

The Terraform Labs co-founder has been caught in a jurisdictional tug-of-war between the U.S. and his native South Korea.

Montenegro Set to Extradite Terra Co-Founder Do Kwon to US: Report

Montenegro's chief legal officer has expressed intentions to extradite the embattled cryptocurrency fugitive Do Kwon to the United States, bypassing South Korea. The Wall Street Journal reported the developments, quoting sources close to the situation.

TerraUSD Creator Do Kwon Faces Potential US Extradition As Montenegro's Legal Chief Weighs Decision

The Justice Minister in Montenegro has told people in private meetings he plans extradite Kwon to the U.S. but not until ruling on an appeal.

Do Kwon will be extradited to US by Montenegro Justice Minister: WSJ

Terraform Labs and the SEC are fighting in court over who should define the legal status of Terra, LUNA wLUNA, and MIR tokens.

Terraform Labs asks judge to let jury decide if UST and LUNA tokens are securities

TerraClassicUSD (CRYPTO: USTC), the remnant of the collapsed Terra blockchain, has surged 300% in the past week. What Happened: The rise in investor interest follows the news that cryptocurrency exchange Binance has started offering perpetual contracts for USTC, and as details of a proposed Bitcoin-focused revival plan with an airdrop emerge.

Remember The Ill-Fated Terra Stable Coin? Its Shot Up Nearly 300% This Week — Here's Why

The suit was filed in September 2022 by Julian Moreno Beltran and Douglas Gan on behalf of 375 others, who claim they lost a combined $57 million.

Terraform Labs, Do Kwon Fail to Have Singapore Class-Action Suit Rejected: Report

Terra ecosystem coins have spiked following the injection of $15 million into the network's DeFi ecosystem by Terraform Labs.

Terra Ecosystem's LUNA, LUNC Surge By Double-Digits

Ethereum

Amidst the legal turmoil surrounding Terraform Labs and its founders, the cryptocurrency they created, Terra Classic (CRYPTO: LUNC) is blazing past Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). What Happened: Terra Classic is up 25%, trading at $0.000099.

Terra Classic Soars 25% While Bitcoin, Ethereum Take A Backseat Amid Do Kwon's Growing Legal Woes

The extradition of disgraced Terra (LUNA) founder Do Kwon to the US and South Korea has been approved by a court in Montenegro. In a new press release, the Higher Court of Podgorica has ruled that the legal requirements needed for extraditing Kwon to the US and South Korea have been met.

Terra (LUNA) Founder Do Kwon's Extradition to the US and South Korea Approved by Montenegro Court

The High Court in Podgorica, Montenegro, approved the extradition of Do Kown, the co-founder and CEO of Terraform Labs (CRYPTO: LUNA), marking a pivotal moment in the ongoing legal proceedings against the crypto entrepreneur. The court's ruling came in response to a request from South Korea's Ministry of Justice on March 29, 2023, and its subsequent amendment on Sept.

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