Terra Luna has become the talk of the town after it suddenly collapsed when its algorithmic dollar-pegged stablecoin, UST depegged. The mishap was so massive that the entire crypto market slumped down along with it to some extent. Hence, it seems the South Korean Conservative party has requested a parliamentary hearing on the grave matter by inviting many vital members associated with the South Korean Crypto market, especially Terra Luna CEO, Do Kwong to get their views on the matter and talk over some discrepancies which took place during the initial failure of the project.
As per the local news, it seems that the parliamentary committee may be referring to how different Korean exchanges reacted differently at that point of time of the initial Terra Luna collapse rather than working together as one to stop any further losses from happening. The above media views were further cemented by the statement of People’s Power’s Yoon Chang-Hyeon statement.
There is a part that raises questions about the behavior of exchanges during the crash.” “Coinone, Korbit and Gopax stopped trading on May 10, Bithumb on May 11 stopped trading daily, but Upbit did not stop trading until May 13.
The parliamentary committee believes that if these above discrepancies didn’t have occurred then more investors could have been saved from investing their money, as they kept on hoping even after the initial dip that they are just buying the dip. They were only able to do so as the exchange didn’t stop trading even after it was certain that the project had failed.
Further, it is believed that the committee would try to think of a plan with the key members from the crypto market in the meeting to see if they could reimburse the investors of their funds in any way possible.
Tera Luna Legal Team Resigns
What’s more concerning is not the current steps which the Terra Luna team is taking to revive the project but the news of the legal team resigning amidst this crisis.
Yup, you read that right. It has been reported that the General counsel Marc Goldich, chief corporate counsel Lawrence Florio, and regulatory counsel Noah Axler of the project have all left their positions amidst this turmoil. Well, this raises a fresh conspiracy debate regarding why are the top legal team members resigning right now if this is just a project failure. Is there something more to it than it meets the eye? Was this all planned or orchestrated?
My Take On The Matter
I personally think it is next to impossible for this project to rise back up soon as the project has broken one of the golden rules of the crypto market which is losing the investor’s trust. Hence, it would have a hard time doing anything without the investor’s support. Further, I do believe we could have averted more losses from happening if there was a proper regulation in place. Then all exchanges would have stopped the trading of the token at the very instance when the news got confirmed regarding the failure of the project. Hence, this could have prevented more investors from diving into it in the hopes of buying the dip. Plus, we now need an investigation committee to look into the reason why did the legal team just resign. Was the entire ordeal pre-planned to run away with the investor’s funds or did the algorithm just failed?
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