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 U.S. Securities and Exchange Commission (SEC) is reportedly looking to hit the disgraced founder of the Terra ecosystem with a multibillion-dollar fine. According to a new report by Bloomberg, the regulatory agency is seeking a $5.

SEC Looking for $5,300,000,000 Penalty Against Terra-Founder Do Kwon, Alleging ‘Brazen Misconduct': Report

Suggested fines the securities watchdog suggested for Terraform Labs and Ripple are out-of-line with what it has collected from crypto firms in the past.

Do Kwon's Huge Fine Shows the SEC Is Ratcheting Up Penalties Against Crypto Firms

Terraform Labs co-founder Do Kwon filed a fresh appeal in his Montenegrin legal saga, accusing a court of "bizarre" legal interpretations.

Terra Founder Do Kwon Files Extradition Appeal, Calls Out 'Bizarre' Legal Readings From Court

The SEC is calling for a New York court to impose $5.3 billion worth of fines on Terraform Labs and its co-founder Do Kwon, citing their roles in the 2022 Terra-Luna collapse.

SEC suggests $5.3 billion fine for Do Kwon, Terraform Labs

The U.S. Securities and Exchange Commission (SEC) has asked a New York court to impose $5.3 billion in fines on Terraform Labs and co-founder Do Kwon for their role in the $40 billion implosion of the Terra ecosystem in 2022.

Do Kwon, Terraform Labs Should Get $5.3B Fine, SEC Tells Court

A United States District Court has found that Terraform Labs and the company co-founder, Do Kwon, defrauded investors in crypto asset securities. In a post published by the Securities and Exchange Committee's (SEC) Division of Enforcement, the Southern District of New York's District Court reached the decision after a nine-day trial.

Court Finds Terraform Labs Guilty of Defrauding Crypto Investors

A jury in New York has found Terra founder Do Kwon responsible for civil fraud charges.

Do Kwon Found Liable for Fraud Charges in Landmark SEC Verdict

A federal trial court jury has found collapsed crypto company Terraform Labs and its founder Do Kwon liable in the fraud charges brought by the U.S. Securities and Exchange Commission (SEC) in February last year.

Jury Finds Do Kwon and Terraform Labs Liable for Defrauding Investors in Crypto Asset Securities

On Friday, Zack Guzmán, founder of Coinage Media, announced that Terraform Labs' co-founder Do Kwon and his startup were deemed responsible for fraudulent activities in its legal battle against the U.S. Securities and Exchange Commission (SEC). The lawsuit spanned approximately two weeks.

Terraform Labs and Former CEO Do Kwon Found Liable for Civil Fraud by Jury

The SEC accused Kwon and his company of misleading investors about the stability of their so-called “algorithmic stablecoin” Terra USD.

New York Jury Finds Do Kwon, Terraform Labs Liable for Fraud in SEC Case

The federal regulator prevails in asserting that the stablecoin issuer and its founder misled investors.

Do Kwon Found Liable for Fraud in SEC Lawsuit

A jury has found that the co-founder of Terraform Labs, Do Hyeong Kwon, misled investors and was found liable for fraud, according to multiple reports. The Securities and Exchange Commission charged Terraform and Kwon in February 2023 over the algorithmic stablecoin Terra USD, which collapsed in a dramatic fashion a year earlier.

Terraform co-founder Do Kwon found liable for fraud: reports

NEW YORK – Lawyers for the U.S. Securities and Exchange Commission (SEC) rested their case against Terraform Labs and its co-founder, Do Kwon, on Friday, releasing a New York jury to decide whether Kwon and his company are liable for allegedly misleading investors about the stability of Terra USD (UST) and its integration with a Korean mobile payments app.

Jury Begins Deliberations in Civil Fraud Case Against Do Kwon, Terraform Labs

The legal battle surrounding Do Kwon, co-founder of Terraform Labs, has taken another turn, with Montenegro's Supreme Court having thrown a wrench into the extradition process, cancelling a lower court's decision to send the beleaguered co-founder to South Korea. What Happened: The crux of the issue lies in a procedural error.

Do Kwon's Extradition Saga Takes A Twist, As Montenegro Supreme Court Overturns Ruling

In the latest Montenegro Supreme State Prosecutor's Office's announcement, the legal proceedings concerning the extradition of Terraform Labs' former CEO, Do Kwon, will revert to the first trial court.

Ex-Terraform Labs CEO Do Kwon's Extradition Case Reset

The Supreme Court of Montenegro overturned a decision made by the lower courts concerning the extradition of Do Kwon.

Montenegro Supreme Court overturns decision on Do Kwon's extradition as NY civil case continues

Attorneys for Terraform Labs and its founder Do Kwon are expected to give closing arguments on Friday at a trial on claims that Terraform and Kwon defrauded investors before the collapse of their stablecoin shocked cryptocurrency markets in 2022.

Terraform Labs to make final pitch to jury as civil fraud trial wraps

The ongoing trial involving Terraform Labs, the company behind the algorithmic stablecoin UST (CRYPTO: USTC), took a dramatic turn on Monday with the testimony of James Hunsaker, a former employee of Jump Trading. According to a series of social media posts by journalist Alexander Osipovich, Hunsaker's testimony centered around his claim that Jump Trading colluded with Terraform Labs to manipulate the price of UST.

Trading Firm Allegedly Colludes With Do Kwon's Terra, Making $1B Before Peg Collapsed: Testimony

Terraform Labs co-founder Do Kwon has been released from prison in Montenegro as the Balkan country's Supreme Court weighs competing extradition requests from the U.S. and South Korea.

Do Kwon Released From Montenegrin Prison on Bail; Terraform Labs' Civil Trial Begins in NYC

Terraform Labs and its founder Do Kwon are set to face trial on Monday in Manhattan on a regulator's claim that they lied to investors before the collapse of two of the company's cryptocurrencies, which roiled markets in 2022.

Terraform Labs' civil fraud trial set to begin in New York

Former Terra CEO Do Kwon also had his passport confiscated as he ended his prison term on March 23 in Montenegro.

Do Kwon awaits final extradition call in foreigner camp in Montenegro: report

Multiple sources have reported that Do Kwon, the ex-chief executive officer of Terraform Labs, was set free from jail on Saturday while the high court in Montenegro decides on two separate extradition requests submitted by South Korea and the United States.

Do Kwon Out of Jail, Under House Arrest Pending Extradition Decision

The Supreme Court of Montenegro is postponing the extradition of disgraced Terra (LUNA) founder Do Kwon to South Korea.

Montenegrin Supreme Court Postpones Terra Founder Do Kwon's South Korean Extradition

Do Kwon, Terraform's co-founder, is to be released from prison in Montenegro but will in the country for now due to global criminal charges.

Do Kwon to be released from jail, remain in Montenegro

Montenegro's Supreme Court placed a pause on Terra founder Do Kwon's pending extradition from the Balkan country, issuing an order on Friday that overturns earlier decisions from two lower courts to extradite Kwon to his native South Korea.

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