Friday, June 2, 2023

Lawmaker Summons Do Kwon for a Hearing


Yun Chang-Yun, a South Korean lawmaker, has called for a parliamentary hearing on Terra. This attempts to determine the true cause of CEO Do Kwon’s unexpected collapse of both the TerraUSD (UST) stablecoin and the LUNA token.

The meeting, which will include the directors of Korean crypto exchanges, will also try to develop ways to protect investors.

Terra Horizon Changes Direction

The Terraform Labs and Luna Foundation Guard teams are still brainstorming ways to bring the TerraUSD and LUNA tokens back to life. Korean authorities, on the other hand, have placed CEO Do Kwon and his team under investigation.

Yun Chang-Hyun is a politician for the ruling People Power Party of South Korea. He has urged the country’s National Assembly to summon Terraform Labs CEO Do Kwon, according to sources. This includes inviting the heads of the country’s top crypto exchanges to a hearing. It intends to determine out what caused the UST stablecoin and LUNA token to crash. At the same time, devise ways to protect investors.

Inspection of Crypto Exchanges

Notably, the legislator has urged authorities to focus their attention on cryptocurrency exchanges. his is in order to determine their role in the meltdown.

Coinone, Korbit, and Gopax halted trading on May 10, Bithumb on May 11. However, Upbit didn’t stop until May 13th, according to him. Upbit is the most valuable firm, with an 80% market share. However, it is the last to suspend trading after the catastrophe. It earned about 10 billion won ($7.8 million) in commission income in just three days.

Emergency Checks

South Korean financial regulators are currently conducting emergency checks on crypto trading venues and exchanges in the region, according to Yonhap, a local news portal. This is done to improve investment protection.

Similarly, the Financial Supervisory Service (FSS) and the Financial Services Commission (FSC) of South Korea have ordered crypto exchanges to report UST and LUNA transactions during the meltdown. This covers their trading volumes as well as the number of investors that have been impacted.

The agencies have also ordered the exchanges to share information about the countermeasures put in place to mitigate the UST disaster. It also provides their analysis of the crisis’s potential causes.

The current Terra issue is a turning point in the ecosystem of decentralized finance (DeFi). It’s a wake-up call for established projects to look into the long-term viability of their product offers.

TerraUSD (UST) became the world’s third-largest stablecoin in April 2022, with a market capitalization of $17.5 billion. Unfortunately, a few weeks later, the entire project crashed to near zero.

No one knows for sure if the UST stablecoin will ever recover parity with the dollar. It also includes  if the LUNA token will ever rise above its present price of $0.00203. If the Terra project succeeds, Do Kwon and his team will have once again demonstrated to the world that impossible does not exist in the cryptoverse.

Louis Honsa
Louis Honsa
Louis Honsa is an independent writer for Cryptoconstellation. He is a data analyst and trades NFT’s too. Louis enjoys cycling and working out in his free time.

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