Do Kwon summoned to parliamentary hearing following UST and LUNA crash

The dramatic fall of Terra (LUNA) along with the algorithmic stablecoin UST has been a major talking point among the crypto industry. And now South Korean conservative party has requested a parliamentary hearing on the matter.

According to a local news report, Korean exchanges responded differently to the collapse, with the National Assembly’s Political Affairs Committee on Tuesday summoning Terraform Labs co-founder Do Kwon for a parliamentary hearing regarding the issue. The committee’s representative, People’s Power’s Yoon Chang-Hyeon, said:

“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.”

He noted that “as the legislation is delayed, investors’ losses are increasing,” and “that the authorities continue to see the huge loss of investors and are helpless to protect investors.” Rep. Yoon suggested that:

“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.”

Following the historic de-pegging of its algorithmic stablecoin, UST, and the subsequent death spiral that plummeted LUNA tokens to practically nothing, Kwon has tabled a plan to save the ecosystem.

Related: Polygon and others extend helping hand to Terra blockchain projects

Yesterday Kwon suggested Terra ecosystem be forked into two chains, with the current network known as “Terra Classic” (LUNAC) and the new chain known as “Terra” (LUNA).

Both chains will coexist, but the old tokens will be rebranded as LUNAC while the new ones will be known as LUNA according to Kwon. The launch of the new chain will necessitate that Terra developers airdrop new LUNA tokens to holders of the old LUNAC and UST, as well as developers after the plan, is put into action, Kwon added.

All Dutch and English crypto news!

Bitcoin markt zet zich schrap voor woensdag 6 juli

De komende twee weken worden spannend voor de bitcoin koers. Veel investeerders hebben 1 en 6 juli rood (of groen) omcirkeld in hun agenda. Op...

Compass Mining loses facility after allegedly failing to pay power bill

Bitcoin (BTC) mining hardware and hosting company Compass Mining has lost one of its Maine-based hosting facilities after the owner, Dynamics Mining, terminated the hosting...

Tether CTO refutes stablecoin FUD as short-sellers circle

Tether chief technology officer Paolo Ardoino has confirmed that the stablecoin has been the subject of a "coordinated attack" by hedge funds looking to short...

CoinFLEX recovery plan includes tokenized bad debt and more yields

Crypto investment platform CoinFLEX aims to rectify its liquidity shortage and restart user withdrawals by selling off bad debt through a new $47 million token...

Beste exchanges

Koop je crypto bij Bitvavo