Terra has been making the headlines these days because of recent developments around its ecosystem. let’s dive in
Do Kwon on the Run?
A lot has happened since the Terra collapse that occurred in May this year.
For those unfamiliar, Terra’s algorithmic stablecoin TerraUSD (UST) de pegged from the United states dollar and didn’t recover. This resulted in it being delisted and trading pairs halted in crypto Exchanges.
Many companies Affiliated with Terra/Luna filed for bankruptcy after its crash. Projects that were building in Terra’s ecosystem are still recovering. Let’s not forget about the retail investors that went all in on this altcoin.
Recently LUNC, The recovery coin for Terra started seeing some significant price action, but this went the other way on September 14th when A court in Seoul, South Korea, issued an arrest warrant for Terra’s co-founder, Do Kwon, and 5 others involved in the project’s $40B valuation collapse. according to the court, they violated the country’s capital markets law.
The Singapore police force issued a statement saying they would aid in searching for Do Kwon. As Do Kwon relocated to Singapore before the incident. The arrest warrant news caused LUNC’s decline with LUNC going down to the $2.3 mark. According to market data from coinGecko, LUNC fell as much as 45%.
Days after the warrant, Do Kwon denied being on the run from the authorities. He tweeted on his Twitter page that he has a right to privacy and not everyone should know his whereabouts.
Binance to Introduce a 1.2% Trading tax on LUNC.
A 1.2% Trading tax on LUNC, has been recommended By Changpeng Zhao, popularly known as CZ on his exchange Binance. The 1.2 tax can be burned to further reduce the supply of LUNC and improve its price action.
This suggestion came from CZ in a Tweet earlier this week. The tweet stated, “We will implement an opt-in button (on the Binance exchange), for people to opt-in to pay 1.2% tax for their LUNC trading”.
He further added, “However, the exchange would begin the taxation for opt-in traders following the consensus of 25% of the LUNC investors, making sure that early adopters are not the only few paying n extra 1.2%”.
This caused a stir in the LUNC community with some supporting the decision and others condemning it calling it “market manipulation.”
LUNC seems to be having support from the crypto community as many people are still at a loss over the Terra crash. With its co-founders likely to face legal prosecution, the community seems to be the strings keeping the ecosystem alive.