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.

Do Kwon, founder of the collapsed crypto Terra (CRYPTO: LUNA) and terraUSD, has been issued an international arrest warrant over the collapse of his blockchain platform Terraform Labs and multiple criminal charges slapped by South Korea. What Happened: The International Criminal Police Organization has issued a 'Red Notice' For Kwon, who faces charges in South Korea over the $60 billion wipeout of cryptocurrencies he created, according to a Bloomberg report, which cited South Korean officials.

BREAKING: Terra's Do Kwon Slapped With Interpol 'Red Notice,' Says South Korea

Authorities in South Korea claim Interpol has issued a red notice for the arrest of Terraform Labs CEO Do Kwon. The post South Korea says Interpol has issued a red notice for Do Kwon, Bloomberg says appeared first on The Block.

South Korea says Interpol has issued a red notice for Do Kwon, Bloomberg says

The Terra co-founder allegedly fled to Singapore following the collapse of LUNA and UST, but police there have warned he is not in the city-state.

'Clearly on the Run': South Korea Wants Interpol Red Notice Against Do Kwon

South Korean prosecutors investigating Terra (LUNA) founder Do Kwon have reportedly asked Interpol to place a red notice on the crypto entrepreneur as his whereabouts remain unknown.

Prosecutors Ask Interpol To Put Red Notice on Terra Founder Do Kwon: Report

Terra (LUNA) founder Do Kwon has denied that he is evading authorities despite statements from South Korean prosecutors claiming the contrary. Bloomberg recently reported that warrants were issued to Kwon and five others who were charged with violations of South Korea's capital markets law.

Terra (LUNA) Founder Do Kwon Denies He's on the Run After South Korean Authorities Issue Arrest Warrant

With the Terra co-founder's current location a mystery, South Korean prosecutors have requested that Interpol issue a red notice.

South Korean Authorities Request Interpol Red Notice For Terra's Do Kwon

Luna Classic (Former Terra)

Terraform Labs founder Do Kwon is not in Singapore, local police say. Accused of fraud after the collapse of cryptocurrencies luna and terrausd, he is wanted in South Korea after a court issued an arrest warrant for him. However, Kwon insists that he is not “on the run.

Luna Founder Do Kwon Isn't in Singapore, Police Say After South Korean Court Issues His Arrest Warrant

The founder of the collapsed crypto Terra (CRYPTO: LUNA) and terraUSD, Do Kwon on Sunday denied that he was on the run after the Singapore police said he was no longer in the country.  Last week, South Korean authorities issued an arrest warrant for Kwon and five others following the collapse of his blockchain platform Terraform Labs.

Terra Founder Do Kwon Says He's Not 'On The Run,' Singapore Police Say He's Gone

The man behind Terra is wanted by South Korean authorities and is not in Singapore as they thought, but tweeted that he's not hiding.

Terra Co-Founder Do Kwon: I Am Not 'On the Run'

Terraform Labs founder Do Kwon, who is wanted by South Korean authorities, is not in the city-state, Reuters reported. The post Do Kwon is not in Singapore, according to police: Reuters appeared first on The Block.

Do Kwon is not in Singapore, according to police: Reuters

According to local reports stemming from South Korea, the country's foreign ministry is looking to invalidate the co-founder of Terraform Labs Do Kwon's passport. The story was published the day after it was reported that Seoul's Southern District Prosecutors Office issued a warrant for Kwon's arrest.

South Korea's Ministry of Foreign Affairs Plans to Revoke Do Kwon's Passport: Report

A court in South Korea is issuing an arrest warrant for Terraform Labs founder Do Kwon following the collapse of the cryptocurrency Terra (LUNA) and algorithmic stablecoin TerraUSD (UST).

South Korean Authorities Seeking Terra (LUNA) Founder Do Kwon With Arrest Warrant: Report

The South Korean Ministry of Finance has declared that it is seeking to revoke the passports of Do Kwon, a co-founder of Terra blockchain, and five other individuals associated with the beleaguered project, according to a report. Korean news outlet Munhwa Ilbo stated Dan Sung-Han, the director of the Seoul Southern District Prosecutor's Office for Financial and Securities Crimes, requested the finance ministry cancel the suspects' passports to speed up its hunt against the accused.

South Korean Government Seeks To Revoke Do Kwon's Passport: Report

According to the Financial Times, Singapore is not on South Korea's list of bilateral extradition treaties — and prosecutors want to pressure Kwon to return.

South Korea May Void Do Kwon's Passport and Issue Interpol Red Notice

In an effort to expedite the deportation of Terra's co-founder, South Korean officials look to void Do Kwon's passport.

South Korean Authorities Seek to Void Terra Cofounder Do Kwon's Passport: Report

South Korean prosecutors have asked the country's foreign ministry to invalidate Terraform Labs founder Do Kwon's passport, according to local media. The post South Korean authorities seek to invalidate Do Kwon's passport: Munhwa appeared first on The Block.

South Korean authorities seek to invalidate Do Kwon's passport: Munhwa

A warrant for the arrest of Do Kwon and five others has reportedly been issued by prosecutors in South Korea. The prosecutors allege that Kwon and his co-accused violated the country's capital markets law. In addition to the arrest warrant, prosecutors will reportedly request an Interpol red notice for the Terraform Labs chief executive officer.

Report: South Korean Prosecutors Issue Arrest Warrant for Terraform Labs CEO Do Kwon

According to Bloomberg, a court has also issued arrest warrants for five others on allegations that they violated South Korea's capital markets law.

South Korea Issues Arrest Warrant for Do Kwon

Terra-based decentralized finance products saw outflows of over $20 million this morning.

Terra's Luna, Luna Classic Tokens Plunge as South Korea Issues Arrest Warrant for Do Kwon

A South Korean court has issued an arrest warrant for Do Kwon, the primary developer of failed cryptocurrency Luna and the founder of blockchain platform Terraform Labs.

S.Korea court orders arrest of developer of failed cryptocurrency Luna

Terra has lost steam after last week's sudden surge, but both LUNA and LUNA Classic are still way up in price over the last week.

Terra Falls Back Down to Earth: LUNA Sinks 38% From Recent High

The price action in LUNA and LUNC tokens looks more like that of meme tokens such as DOGE and SHIB.

Terra's LUNA Tumbles More Than 30%, Making U-Turn From Surge

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