The saying “Blessed is not the same, harm is not alone” has never been wrong in Terra’s case. Since the collapse of both LUNA and UST, everything has been like a chain of dominoes with many other consequences.
Korea wants CEO Terra Do Kwon to testify before the National Assembly
Congressman Yun Chang-Hyun of the ruling National Power Party wants Terraform Labs CEO Do Kwon to answer before the National Assembly about the case related to the LUNA-UST model.
Mr. Yun Chang-Hyun spoke before the Internal Affairs Committee of the National Assembly of Korea:
“We need to bring exchange officials, including CEO Do Kwon of Terra, the project that has recently encountered problems, before Congress to be questioned about the reasons and ways to protect investors.”
The collapse event of the Terra . ecosystem caused billions of dollars in damage and messed up the entire cryptocurrency market. Even the management’s handling attitude in this case caused a wave of negative public opinion. The community, even the CEO of Binance – CZ, also criticized them for being irresponsible and not having a specific policy to protect users.
Terra CEO, Do Kwon has Korean nationality and Terraform Labs was initially registered in the land of kimchi and recently moved its headquarters to Singapore. Therefore, Korea has full authority to decide the law in this case.
Meanwhile, South Korean financial regulators have “unexpectedly inspected” exchanges, asking for information on trading activities related to LUNA and UST. The Korean Financial Services Commission (FSC) also asked the exchanges if they had any precautions to prevent the price of UST from “free falling” and provided the reason behind the incident.
Terra’s legal team simultaneously resigned
According to a source with The Block, Terraform Labs, the company behind the Terra blockchain (LUNA) and stablecoin UST, is having to hire outside lawyers because its legal team left the company following the collapse of the company. LUNA-UST since May 8.
Meanwhile, a representative of Terraform Labs said:
“Last week was a difficult time for Terraform Labs and a small number of people in the company decided to resign. However, the majority of employees still firmly believe in the mission of the project. Terra has more than just the stablecoin UST but a community of incredible passion and a clear vision of rebuilding. Our current goal will be to restore the Terra ecosystem.”
The above disclosures show that there is a strong turmoil inside the company and the legal department, who clearly see the legal risks that Terraform Labs may face when being interfered by law, are the ones who leave. quit first.
Do Kwon’s blockchain hard fork proposal is strongly opposed
According to an informal vote conducted in the Terra community (LUNA), the majority is disagreeing with CEO Do Kwon’s blockchain hard fork proposal. Of the more than 2,000 votes collected, more than 90% were against Do Kwon’s proposal. The majority of people who participated in the vote only commented briefly:
“No one wants to fork.”
Since before CEO Do Kwon’s proposal was announced, there have been many rumors that Terraform Labs will actively hard fork the blockchain and bring it back before de-peg because the LUNA-UST model is already inherently a LUNA-UST model. “irreparable”. Even the CEO of Binance, CZ, thinks this plan will fail. Quoting his tweet verbatim:
The hard fork will not add any value to the new chain. It’s all just vain hope.
– Transactions that have occurred after the blockchain snapshot, including on-chain and off-chain transactions (on exchanges) cannot be denied.
Where is the amount of BTC that should be used as a reserve fund?
Shouldn’t ALL of them be used to acquire UST?”
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