South Korea Conducts Emergency Investigation Of LUNA And UST Falls

Posted on May 19, 2022 in Cryptocurrency

COINHOT – South Korea’s biggest financial regulator has launched an urgent investigation into the collapse of cryptocurrency LUNA and stablecoin UST. Authorities have asked local cryptocurrency exchanges to provide information on trading and investors in both currencies.

Last week, UST lost value against the dollar, causing UST and Terra (LUNA) prices to fall. According to sources, the Financial Services Commission (FSC) and Financial Supervisory Services (FSS) have asked local cryptocurrency exchange operators to share information about USST and Luna.

An official from a cryptocurrency exchange operator said:

An official said: “Last week, the financial authorities asked for data on the number of transactions and investors, and the exchange measured related measures.”

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“I think steps have been taken to minimize future investor losses,” he said.

Information requested by the authorities includes trading volume, closing price and number of investors involved. Regulators have also asked exchange operators to provide responses to the recent collapse of the cryptocurrency market and to analyze the causes of the collapse.

UST and LUNA were discovered by Korean citizen Kwon Do-hyeong (real name: Do Kwon). His company, Terraform Labs, was founded in Singapore. After the collapse of both cryptocurrencies, Kwon has made several plans to revive the coin, but so far none of them have worked.

Kwon’s wife is said to have sought police protection after an unidentified man trespassed into an apartment in South Korea. According to media reports, the man was later identified as an investor who lost around $2 million, or around Rs 29.2 billion, due to the collapse of LUNA.

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Previously, Terra blockchain co-founder Kwon Do announced a new plan to restore the ecosystem after the Terra Luna and Terra USD network tokens collided. The plan is to create a new blockchain which is a hard fork of the existing blockchain.

A hard fork is a backwards incompatible change. This can happen if there is a paradoxical change from the previous protocol. According to a report by Cointelegraph on Tuesday, May 17, 2022, Kwon said on Monday, May 16, 2022 that Terraform Labs will submit a new governance proposal on May 18 to form the Terra Luna blockchain called Terra.

Later, the new chain will no longer be linked to the stable Terra USD (UST). Meanwhile, the legacy Terra blockchain will continue to exist with an above ground reservoir and will be called Terra Classic (LUNC). According to Kwon’s plan, if passed, the new LUNA blockchain will launch on May 27.

Under this proposal, new LUNA tokens will be delivered to LUNC holders, custodians and lead developers on the Terra Classic blockchain.

Additionally, the Terraform Labs wallet terra1dp0taj85ruc299rkdvzp4z5p fg6z6swaed74e6 will be removed from the airdrop whitelist, making Chained a full community asset.

The proposed maximum supply for LUNC is set at 1 billion, and depending on eligibility conditions, 25% for community pools, 5% for lead developers, and 70% for LUNC and UST holders through various highlights of the May event.

However, the plan has been criticized by Binance CEO Changpeng Zhao. Zhao said he thought Terra’s plan to split the blockchain wouldn’t work because it didn’t provide any value.

Quoting Theblockcrypto on Tuesday (17/5/2022), Zhao said, “It didn’t work. The fork didn’t add value to the new fork. It was just a hopeful idea.”

Zhao’s tweet came after Kwon proposed a revival plan for Terra, which collapsed last week. Kwon proposes to create a new Terra blockchain and distribute 1 billion tokens to stakeholders.

However, according to Zhao, “printing (making money) does not create value.” That is, “cash holders” Zhao also wondered where Luna Foundation Guard’s Bitcoin reserves were.

Zhao asked, “Shouldn’t I use BTC ALL to buy back UST first?”

Overall, Zhao is “very disappointed” with the way the Terra team handled the collapse of the stablecoin UST and associated token Luna (LUNA).

BinanceLabs is known to be an early backer of Terraform Labs, leading an initial $32 million round in 2018. Other notable investors in Terraform include Coinbase Ventures, Polychain Capital, Pantera Capital, and Hashed.

Previously, in addition to the latest songs and playlists, musicians could use Spotify’s artist profile page to promote merchandise and concert dates. Not only that, you can also use the page to promote your NFT.

As first reported by Music Ally, Spotify is starting to test the NFT gallery. This feature is available to several groups of US Android users and includes Web3 fans like Steve Aoki.

When this beta stage is accessible, users can visit one of the artist’s default pages and scroll through the track list to view the gallery.

Clicking on the NFT allows the user to view a larger version and a brief description of the NFT image. Then there is the “Learn More” option which directs the user to the OpenSea NFT listing page where they can purchase NFT. According to Music Ally, Spotify does not take a commission on sales to help with the audition process.

“Spotify is testing a small group of artists who will help promote existing third-party NFT products through artist profiles,” Spotify said on May 17, 2022, citing Yahoo Finance.

“We regularly run several tests to improve the experience of artists and fans. Some of these tests ultimately pave the way for a broader experience, while others serve only as important lessons.

This test was conducted when other major platforms, such as Instagram, were incorporating NFT capabilities.

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