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South Korean Financial Authorities Files An Investigation into The Collapse of Terra

Daily Market Wrap

  • Crypto market cap: 1.30 trillion, up 0.95%

  • BTC price stands at USD 30,139, up 0.66%

  • ETH price stands at USD 2,064, up 1.43%

  • Top gainer: Kyber Network Crystal v2 (KNC), up 38.37%

  • Top loser: XDC Network (XDC), down 2.85%

News of the Day

Why it matters:

  • South Korea’s Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) have reportedly launched “emergency” inspections into local crypto exchanges linked to the recent collapse of LUNA and TerraUSD (UST) tokens

  • Even Though Korean financial authorities have been watching the crypto market closely after the collapse, they admit that there’s not much they can do when it comes to investor protection

  • On Tuesday, a politician from South Korea’s ruling People Power Party, Yun Chang-Hyun, calls for Do Kwon to attend the hearing on TerraUSD’s collapse

  • He also urges crypto exchanges to take account of their behaviour during the collapse

Crypto daily spotlight

Brief introduction: Terra is a decentralised stablecoin blockchain that uses fiat-pegged stablecoins to power price-stable global payments systems. Terra’s native token LUNA is used to stabilise the price of the protocol’s stablecoins. Starting on May 9, Terra (Luna) collapsed, losing more than 99 percent of its value due to its link to terraUSD (UST), a stablecoin that was pegged to the US dollar.

Why it matters:

  • Do Kwon, the founder of Terraform Labs, has proposed a new “Revival Plan” for LUNA in a recent tweet thread on Monday

  • The old Terra chain will be forked into a new chain without the algorithmic stablecoin. The old chain will be tagged as Terra Classic (token Luna Classic — LUNC), and the new chain will be called Terra

  • New LUNA will be airdropped to Luna classic stakers, Luna classic holders, residual UST holders, and the essential decentralised app developers of Terra Classic

  • However, the Terra Builders Community is not yet in support of Do Kwon’s Proposal and made a counter proposal to Do Kwon’s proposal instead

Daily sector tracker

Daily News Roundup

  • China Contributes to a Significant Chunk of the World’s Bitcoin Mining Operations Despite Last Year's Ban

  • Crypto Funds See the Year’s Highest Inflows Regardless of the Collapse of LUNA and TerraUSD (UST)

  • Jump-Backed Wormhole Bridge Has Launched Support for the Algorand Blockchain

  • Animoca Brands Closes the Oversubscribed Phantom Galaxies Planet Private Sale

  • Crypto Analyst PlanB Says tThat a New Bull Run For Bitcoin is on the Way

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