South Korean lawmakers want Do Kwon to do some explaining about Terra. Here are the details

Sahana Kiran
Source – Pixabay

The dramatic fall of Terra’s native assets LUNA and UST is no news to anyone. The merciless plummet that both these assets endured towards zero were witnessed by the entire globe. Now, as the founder of the network Do Kwon tries to fix it, regulators from across the globe have begun scrutinizing the stablecoin industry. South Korean lawmakers, however, went a step ahead and decided to probe the crypto project.

Earlier today, the de-pegging of UST was taken all the way to the National Assembly’s Political Affairs Committee at a plenary meeting. During the meeting, discussing the damage the network had caused to several individuals, Rep. Yoon Chang-hyeon, a member of the ruling party urged the government to bring in Do Kwon for questioning.

The representative wanted to hold a hearing just to probe the matter and come up with ways to protect its investors. Not just South Korea, an array of regulators grew weary of the damage Terra had caused and decided to investigate the entire stablecoin market.

South Korean exchanges like Upbit halted trading of Terra’s native assets on 11 May itself. Despite this, over 200,000 South Koreans reportedly succumbed to losses. Chang-hyeon added,

“Coinone, Korbit, and Gopax stopped trading on May 10, and Bithumb on May 11, but Upbit did not stop trading until May 13. Upbit, which was the last to stop trading even after seeing the crash, is the No. 1 company with an 80% share. In just those three days, it earned close to 10 billion won [$7.8 million] in commission income.”

An array of investors came forward and revealed that they were homeless and broke following the latest mishap. Several have even confessed to having had suicidal tendencies. With investors in extensive trouble, the government is sure to barge in.

Terra’s hard fork a no-go?

Following the footsteps of its peers, Terra could potentially undergo a hard fork. Do Kwon was trying everything under the sun that would help in resurrecting his assets. As a result, he went on to propose a hard fork of the blockchain. According to the latest proposal, he intends to call it “Terra Classic” and the asset will be labeled “Luna Classic [LUNC].”

The community seemed to have faith in LUNC as 90 percent of them did not want a hard fork.


Looks like Kwon has to brew more revival plans before governments from across the globe issue investigations.