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 legal team defending Do Kwon, the co-founder and former CEO of Terraform Labs, argues that the U.S. Securities and Exchange Commission (SEC) lacks the capacity to depose Kwon, deeming it an “impossible” feat.

Do Kwon's Defense Declares SEC's Deposition Request ‘Impossible' Amid Ongoing Detention Saga

Lawyers representing imprisoned Terraform Labs co-founder Do Kwon have urged a US federal court to reject a request from the SEC to question Kwon in America by October 13.

Do Kwon's Lawyers Say SEC's Request To Extradite Him to the US “Impossible”

A court should oppose the SEC's move to take former Terra CEO Do Kwon's deposition in the U.S. because he is detained, his lawyers argued.

Do Kwon argues that SEC bid for US deposition is impossible

The TerraUSD creator opposes the SEC's attempts to bring him back to the U.S. for questioning about his failed stablecoin projects.

Terraform Labs Founder Do Kwon Opposes SEC's Extradition Request

The TRON founder has built a crypto empire that would cause collateral damage if it collapsed.

Justin Sun: The Next Do Kwon or Sam Bankman-Fried?

A judge has granted the U.S. Securities and Exchange Commission (SEC) permission to work with international authorities to question one of the co-founders of Terraform Labs. Court records indicate that District Judge Jed S.

SEC Granted Permission To Go After Do Kwon's Close Associate in Korea

Class-action certification could force crypto company to alert shareholders to the case and alter SEC document for listing on Nasdaq.

Galaxy's U.S. Move Risks New Delay From Lawsuit Linked To Luna

The judge in the FTX bankruptcy proceedings is permitting Terraform Labs to subpoena relevant information from the exchange in its ongoing case against the U.S. Securities and Exchange Commission (SEC). According to Judge John Dorsey's filing on July 31st, Terraform Labs can issue subpoenas to FTX Trading and FTX.

Judge Allows Terraform Labs To Subpoena FTX Entities in Regards to Failure of UST

Terraform Labs could be holding more than $159 million worth of crypto despite previous claims to the contrary, according to new on-chain sleuthing performed for Arkham Intelligence. The sleuthing, executed by the pseudonymous on-chain analyst ErgoBTC and another anonymous on-chain researcher, was incentivized by a bounty of 9519.263 Arkham's newly launched native token (ARKM).

Terraform Labs May Be Holding Over $159,000,000 in Crypto Despite Claims of Almost Losing Everything: Arkham Intelligence

The ruling found that crypto "falls far short" of having the significance needed for Congress to review regulation.

Judge Refuses to Dismiss SEC Lawsuit Against Terraform Labs Despite Ripple Ruling

The Terra/Luna issuer was the first to cite the recent Ripple decision in its defense against an SEC enforcement action.

Judge slams Ripple decision in SEC's case against Terraform Labs

A federal judge rejected Terraform Labs' motion to dismiss a lawsuit filed by the U.S. Securities and Exchange Commission.

Judge Rejects Ripple Ruling Precedent in Denying Terraform Labs' Motion to Dismiss SEC Lawsuit

Terraform Labs and its founder Do Kwon must face fraud allegations brought by the U.S. Securities and Exchange Commission, a federal judge in Manhattan ruled on Monday.

Terraform Labs must face US SEC fraud allegations, judge rules

The first-ever bounty hunt has been facilitated by the Arkham Intel Exchange, a platform that uses a bounty system to encourage users to discover on-chain data which launched on July 10.

First Arkham Intel Bounty Goes to On-Chain Sleuths Who Found Do Kwon Wallets

The payout for the approved bounty submission is 9,519.26 ARKHM, which is worth $4,950.

Arkham Intel Exchange goes after Do Kwon crypto wallets with first bounty

The US Securities and Exchange Commission (SEC) has added additional documents to its lawsuit against Terraform Labs and its CEO Do Kwon.

SEC Hints at Appeal for XRP Case in Lawsuit Against Terraform Labs

SEC lawyers told a federal judge that portions of the Ripple Labs case that went against the agency were wrong and should be ignored.

SEC lawyers preview likely Ripple appeal in case against Do Kwon

Terraform Labs appointed a new chief executive officer following Do Kwon's resignation on March 31, 2023. In a Wall Street Journal interview, the interim CEO, Chris Amani, discussed his team's “vision” for rescuing the beleaguered blockchain project.

Terraform Labs Appoints New CEO While Co-Founder Remains in Jail

Terraform Labs is asking a court to allow it to subpoena certain information about accounts, wallets and assets from bankrupt exchange FTX.

Terraform Labs wants to subpoena info from FTX to aid its SEC defense

Terraform Labs has appointed a new interim CEO, Chris Amani, amid the ongoing legal troubles of its co-founder, Do Kwon. What Happened: Amani, previously the company's COO and CFO, is stepping in to lead the crypto firm during this challenging time, The Wall Street Journal reported.

Terraform Labs Names New CEO With Hopes To Revive Terra Blockchain Amid Legal Woes

Law enforcement officials in Switzerland reportedly seized approximately $26 million in bitcoin and other cryptocurrencies, believed to be linked to Terraform Labs and its co-founder, Do Kwon. Local media in South Korea revealed that the funds were confiscated from Sygnum, a crypto bank based in Zurich. The U.S.

Report: Swiss Authorities Seize $26 Million in Cryptocurrency Linked to Terraform Labs and Do Kwon

South Korea's nearly 7 million registered users, many in the nation's capital, show a huge interest in trading crypto. But CoinDesk's 4th-ranked Crypto Hub for 2023 is still licking its wounds after the catastrophic collapse of Do Kwon's Terra blockchain – for a time, South Korea's favorite crypto project.

Seoul: Asia's Retail Crypto Capital Moves on After Do Kwon

Swiss authorities have reportedly frozen $26 million worth of assets from Terraform Labs and its founder, former crypto billionaire Do Kwon. The assets frozen included Bitcoin (BTC), and was frozen from Swiss digital asset bank Sygnum, reports Korean outlet Digital Asset.

$26,000,000 Worth of Do Kwon and Terraform Labs' Assets Frozen by Swiss Police: Report

$26 million in crypto linked to Terraform Labs and held in digital asset bank Sygnum has reportedly been frozen by Swiss authorities.

Swiss Authorities Freeze $26M Worth of Do Kwon, Terraform Labs Crypto Assets: Report

On Monday, a Montenegro court sentenced the disgraced Terra (LUNA) founder Do Kwon to four months in prison for attempting to travel with a forged passport. Kwon was first arrested in late March after trying to board a flight to the United Arab Emirates (UAE) with a Costa Rican passport, which authorities claimed was forged.

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