YEREVAN (CoinChapter.com) – The demise of stablecoin issuance protocol Terra and its sister tokens LUNA and TerraUSD (UST) attracted the attention of South Korean lawmakers. In detail, Yoon Chang-Hyeon, a member of the ruling People’s Power Party, suggested summoning Terraform Labs’ CEO, Do Kwon, for investigation.
Terra’s Do Kwon to the stand?
The representative cited increasing losses investors face due to a weak regulative structure and “delayed legislation.” Additionally, during the LUNA crash, Yoon Chang-Hyeon called out several exchanges concerning their “shady” behavior.
He mentioned that exchanges Coinone, Korbit, and Gopax halted Terra token trading on May 10. However, Upbit did not stop LUNA trading until May 13. In doing so, the platform increased its trading volume by nearly $8 million as investors scrambled to unload their holdings.
Also read: Terra LUNA suicide shakes the crypto market; Do Kwon "heartbroken."
We should bring related exchange officials, including CEO Kwon Do of Luna, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors.
added the official.
Meanwhile, several of Terra’s legal team members quit on short notice after the LUNA crash.
Terraform Labs’ legal team jumps the gun
Sources report that shortly after the debacle of LUNA, several counsel team members fled the ship. Marc Goldich, Lawrence Florio, and Noah Axler left their positions at Terraform, judging from their LinkedIn accounts. As a result, an external counsel now handles all the legal ‘mess’ Terra has to deal with.
Also read: Terra chain halts after LUNA crashes 99.9% – can the token pull a phoenix?
Additionally, the crash called the project’s legitimacy into question. For example, billionaire investor Bill Ackman called Terraform Labs’ algorithm a “crypto version of a pyramid scheme.” He referred to the lack of “fundamental underlying business” and that Terra’s Anchor protocol promised investors unrealistic 20% returns.
What is the future like for Terra?
Despite the loss of approximately $39 billion in valuation, the company claims to “keep focus” on the Terra ecosystem’s revival and transforming the tokenomics. The community, however, voted against forking the cryptocurrency, which Do Kwon suggested earlier.
In detail, the CEO proposed to eliminate UST and tag the old chain as Terra Classic (LUNC). The new chain would retain the name Terra (LUNA). The forked chain would airdrop its tokens to LUNC stakers, residual UST holders, and Terra Classic developers. As a result, Terra would become a community-owned chain with a fixed supply of 1 billion LUNA tokens.
Also read: Terra investor invades Do Kwon's house after LUNA's 99% price crash.
However, an overwhelming 90% of the participants rejected the fork idea. Instead, many leaned towards the burning method. “
I hope the fork idea gets abandoned and that they do the burn method instead. So much more people will be happy. This will bring Luna back to the top 10 with a higher market cap as all eyes are on this.
commented a forum participant.
