Yun Chang-hyun, spokesperson for the South Korean People’s Power Party, has called for parliamentary sessions on the recent collapse of the Terra ecosystem. This is reported by local media.
According to him, Terraform Labs CEO Do Kwon and representatives of Korean cryptocurrency exchanges should attend the meeting. Together they will analyze the causes of the situation and the measures to be taken to protect investors.
Chang-hyun pointed out that some platforms continued to trade with the stablecoin after its sudden collapse. Coinone, Korbit, and Gopax stopped trading on May 10, Bithumb on May 11, and Upbit only on May 13.
Upbit, the last stop of the trade, […] In just these three days, I earned about 10 billion won ($7.8 million) from commissions,” Jang-hyun added.
The Korean news agency Yonhap reported that financial regulators have launched “emergency checks” on local bitcoin exchanges, citing anonymous sources.
The Financial Services Commission (FSC) and Financial Supervision Service (FSS) reportedly requested information from exchanges on UST and LUNA transactions, including trading volumes and number of investors. Authorities also asked platforms to conduct their own analysis of the stablecoin’s collapse and take action against such situations.
Recall that on May 8, the UST lost its peg against the US dollar. This happened against the background of the exit of assets from the Anchor protocol as the rate of return on deposits dropped to 17.87%.
On May 10, the asset’s prices fell below $0.62. The decline continued on May 11, after which the LUNA cryptocurrency used to issue the UST fell to $0.3. According to CoinGecko, at the time of writing, the latter is worth $0.0018 and the stable coin is $0.09.
Despite the crisis behind ecosystem development, Terraform Labs hopes to regain public trust. Earlier, Do Kwon offered to hard fork the network. Voting will take place on May 18.
Su Zhu of Three Arrows Capital, one of Terra’s investors, supported the initiative, to tweet: “Terra2 coming soon.”
In response, Binance CEO Changpeng Zhao questioned the success of the Terra hard fork as it “has no value”.
Source: Fork Log
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