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 Terraform Labs founder will serve his four-month sentence in Montenegro for document forgery before a final decision on his extradition.

Terra Co-Founder Do Kwon's Extradition Approved by Montenegro Court

A court in Montenegro said on Friday it had approved the extradition of cryptocurrency entrepreneur Do Kwon, leaving a minister to decide if he will be handed over to South Korea or the United States, which both want him.

Montenegro court approves extradition of 'cryptocurrency king' Do Kwon

Minister will decide if Kwon will be extradited to the U.S. or South Korea.

Montenegro Court Approves Extradition of Do Kwon

Why did transactions spike on Polygon? What's Terra's plan post-Do Kwon? And why did South Korea buy Coinbase shares? Read on to find out.

Five top crypto stories this past week: ETF updates, Terraform Labs' reemergence, why transactions surged on one L2, and more

Do Kwon, the former CEO and founder of Terraform Labs, has been unsuccessful in his appeal against a passport fraud conviction mandated by a court in Montenegro. What Happened: CryptoSlate reported on Wednesday that Kwon and his associate, Han Chang-joon, had been indicted for passport document falsification in June.

Terraform Labs' Founder Do Kwon Fails To Overturn Passport Fraud Conviction

The founder of Terraform Labs was sentenced to four months in prison, and faces extradition following the completion of his sentence.

Do Kwon's Appeal in Fake Passport Case Denied by Montenegro High Court

In a recent development, Terraform Labs has completed the acquisition of Pulsar Finance, a firm specializing in cross-chain analytics and portfolio management. The acquisition occurs as Terraform's former CEO Do Kwon remains incarcerated in Montenegro and a U.S. Securities and Exchange Commission (SEC) lawsuit alleging multi-billion dollar fraud hangs over his head.

Under New Leadership, Terraform Labs Acquires Cross-Chain Analytics Firm Pulsar Finance

Terraform Labs, leading developer of the Terra blockchain, today announced the acquisition of Pulsar Finance.

Terraform Labs acquires cross-chain data provider as it pursues post-Kwon plans

Following Bitcoin's recent positive rise, cryptocurrencies have formed a bullish pattern. The altcoins such as FTT, LUNA, KAS, IMX and RPL are the best performing cryptocurrencies, analysis by Coinidol.com.

Weekly Cryptocurrency Analysis: FTT, LUNA, KAS, IMX And RPL Take Bullish Momentum

Jump Crypto, a segment of the Jump Trading group, is currently facing scrutiny from the U.S. Securities and Exchange Commission (SEC).

Jump Crypto Faces SEC Scrutiny Over Alleged Role in Do Kwon's Terra's $1 Billion UST Deal

The situation surrounding Terraform Labs co-founder Do Kwon has garnered renewed attention. Recent reports have brought to light possible undisclosed interactions between Jump Crypto President Kanav Kariya and Kwon.

Terra Co-Founder Do Kwon Under Renewed Scrutiny As Crypto Firm Exec Declines SEC Questions

Last week, lawyers representing Terraform Labs and its ex-CEO Do Hyeong Kwon (Do Kwon) moved to dismiss the lawsuit brought against them by the U.S. Securities and Exchange Commission (SEC). In response, the SEC has countered with a motion of its own, asserting the accountability of both the company and Kwon.

SEC Clashes With Do Kwon and Terraform Labs in Court, Alleging ‘Clear, Undisputed' Fraud

Terraform and Kwon's lawyers also filed a similar motion last week, asking a federal judge to nix SEC allegations.

SEC seeks summary judgment in lawsuit against Terraform, Do Kwon

The request follows a move by Kwon's defense team to do the same.

SEC Asks Court for Summary Judgement Against Do Kwon, Terraform

Terraform Labs and its co-founder Do Kwon are asking the Southern District of New York court to strike out parts of the complaint filed by the U.S. Securities and Exchange Commission (SEC). The SEC accuses the collapsed stablecoin issuer and its disgraced former CEO of offering and selling crypto assets that qualify as securities.

Do Kwon and Terraform Labs Seek Summary Judgement in SEC Lawsuit, Citing ‘Severe Deficiencies' in the Case

In the latest legal maneuver, Terraform Labs and its former CEO Do Hyeong Kwon (Do Kwon) have submitted a comprehensive Motion for Summary Judgment, seeking an immediate dismissal of the fraud charges levied against them by the U.S. Securities and Exchange Commission (SEC).

Terraform Labs and Do Kwon Challenge SEC, Seeking Dismissal of Multi-Billion Dollar Fraud Charges

Shin is attempting to distance himself from Terra and Kwon as he faces trial in South Korea.

Daniel Shin Blames Terraform Collapse on Do Kwon's Management: Report

Lawyers representing Terraform Labs and its co-founder asked a judge to decide a case brought by the SEC in an effort to avoid a full trial.

Do Kwon and Terraform Labs' lawyers urge judge to nix SEC's allegations

Terraform Labs and its co-founder, Do Kwon, have approached a federal court to stand by their defense against the U.S. Securities and Exchange Commission's (SEC) allegations of fraud. They argue that the SEC has failed to provide solid evidence that the crypto entity dealt with securities.

Do Kwon, Terraform Labs Tell Court: SEC Hasn't Proven 'Defendants Did Anything Wrong'

Terraform Labs and its co-founder, Do Kwon, are asking a federal judge to side with them in the U.S. Securities and Exchange Commission (SEC) fraud case, arguing that the regulator hasn't managed to prove the crypto company was offering securities.

Do Kwon's Terraform Labs Seeks Early Court Rejection of U.S. SEC Case

Citadel said the claims by Terraform was filed to "deflect attention" from its alleged charges.

Billionaire Ken Griffin's Citadel Securities Denies 'Ridiculous' Claim That It Tanked Do Kwon's Terraform

Kwon has been accused of misleading investors about the terraUSD stablecoin, whose 2022 collapse ricocheted around the crypto world.

Do Kwon's SEC Case May Hinge on Role of Jump Trading, Court Documents Show

As for the evidence, Terraform points to an alleged conversation Citadel CEO Ken Griffin had with a pseudonymous trader.

Terraform Labs Alleges Citadel Securities Behind May 2022 UST Stablecoin Depeg Event

Court documents from the SEC show a text exchange where disgraced crypto mogul Do Kwon admitted to planning to generate fake transactions on the Terra blockchain to boost volume and fees.

"I won't tell if you won't" — Do Kwon Admits Terra Faked Trading Volume

In the wake of the U.S. Securities and Exchange Commission's (SEC) call to depose Terraform Labs creator and former CEO Do Kwon, the SEC unveiled an alleged exchange between him and his former associate Daniel Shin.

News for Terra Crypto (LUNA)