Terra LUNA saga continues as the South Korean government takes its own measures to take a look at the situation. National Assembly has summoned both DO Kwon and Korean exchanges to learn details of the crash.
Each Korean exchange reacted differently as the prices of LUNA and UST tanked in the last week. The dramatic fall of algorithmic stablecoin UST has shaken the crypto industry and raised questions on the stable value of stablecoins.
The Political Affairs Committee has summoned Terraform Labs Co-Founder Do Kwon to discuss why the exchanges responded differently to the crash. Yoon Chang-Hyeon, the committee’s representative was of the opinion:
”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.”
Legislators are concerned over the investor’s losses. Investors suffered from monetary losses over the price decline and authorities couldn’t do much to protect them. The hearing with Do Kwon is a step towards understanding what happened and what could be done to control the damage.
“We should bring related exchange officials, including Terra CEO Kwon Do to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors.”
Terra blockchain was halted after an unprecedented price downfall. UST got unpegged from the US dollar and LUNA practically went to zero within a week.
Do Kwon is taking measures to save the Terra ecosystem. He came up with the suggestion of a hard fork that will lead to two chains, Terra Classic (LUNAC) and Terra (LUNA).
The rebranding of LUNA is necessary after the bad name it garnered after spectacular losses. New LUNA tokens will be airdropped to LUNAC and UST holders.