The crypto market again faced a downfall due to the collapse of LUNA and UST coins. It brought all human costs of unstable crypto projects to the surface. UST the algorithmic stablecoin fell over the last week because it lost its peg to the US dollar. It sent its sistercoin LUNA falling to zero and erased nearly $45bn. This crash wiped out all savings of innumerable investors overnight. The financial authorities of South Korea have launched one emergency inspection into domestic crypto exchange operators for enhancing the protection of investors after the recent collapse of crypto LUNA and stablecoin UST. This move came only after LUNA and UST’s death spiral created huge losses for investors. It sent shockwaves worldwide. The authorities asked domestic crypto exchanges to give information related to transactions along with investors of these two coins. For the best Crypto trading platform visit this site.
The emergency investigation
- According to the report the emergency investigation of crypto exchange operators was launched by South Korea.
- It followed the collapse of LUNA and UST.
- Last week the stablecoin UST lost its US dollar peg.
- It sent its price and that of LUNA into free fall.
- UST was trading at below $0.09.
- LUNA was near worthless.
- The top financial regulators of South Korea, along with the Financial Supervisory Service and the Financial Services Commission asked operators of local crypto exchanges to share info relating to LUNA and UST.
- Some officials of a crypto exchange operator sited locally said few things.
- It was mentioned that last week, the financial authorities asked for some data on the total transaction amount and investors.
- They sized up the relevant measures of the exchanges.
- The exchange official said that they did so for drawing up measures for reducing the damage to all investors in the coming days.
- All information that the authorities requested includes volumes of trading, closing prices, total relevant investors, noted publications, etc.
- The regulators asked the exchange operators to give their countermeasures to the current crypto market crash and all analyses of the cause of this collapse.
- LUNA and UST got invested by Kwon Do-Hyung. He is a South Korean national.
- Terraform Labs is a company is built in Singapore.
- From the time of these two cryptos’ collapse, he came up with some plans for reviving the coins.
- Yet none worked till now.
- His wife reportedly sought the protection of police after an unknown man trespassed into their South Korean apartment building.
- As per the media reports, the man got subsequently identified as one investor who has roughly lost $2 million in the collapse of LUNA.
Conclusion
Everyone needs to rethink whatever decentralization actually means. Also what will be happening later with LUNA will never be based upon consensus that has been formed among the community. Algorithmic stablecoins were a great idea on paper. Yet the industry of crypto is coming very dangerously close to the moment of 2008. This is due to the outsized ambition of a project. The virtual currencies that backed Terra must have a serious discussion and think well about how they got to such a moment.
Dianna Ranere