Terra Projects Collapse Post Do Kwon’s Arrest Warrant

Paigambar Mohan Raj
Source: Decrypt

The morning just keeps getting more and more eventful. Moments after South Korean authorities revealed that they have an arrest warrant for Terra chief Do Kwon, the project’s various crypto tokens started to dive.

Terra’s forked LUNA token has fallen by 40.1%, while the older LUNC (Luna Classic) has fallen by 23.9%. The project’s de-pegged stablecoin USTC has fallen by 24.5%. Such a reaction from the market is expected, given the weight of the news. Nonetheless, the fall is especially surprising because the three projects were in the greens, in the 24-hour charts, just this morning, while most major projects were in the reds. Most major projects took a dive today, in reaction to the CPI numbers which were released yesterday.

LUNC’s recent rally is attributed to the 1.2% burn tax proposal. The proposal was approved by the Terra circle and it would implement burns during on-chain activities. LUNC started seeing triple-digit gains right after.

Terra chief’s arrest warrant

The warrant was issued months after the collapse of the Terra ecosystem and its stablecoin (UST). The fall had a significant impact on the cryptocurrency markets. Several companies went bankrupt as a result of the collapse, including the well-known cryptocurrency hedge firm Three Arrows Capital (3AC).

Kwon had insisted that he is cooperating with the authorities in his first interview with the public last month. However, he did say that he was not contacted by any South Korean authorities, nor were any charges filed against him. Well, that appears to have changed this time around.

Many prominent crypto personalities took to Twitter and expressed their thoughts on the situation. FatManTerra, a member of the Terra Research Forum, said that it was a great day for justice.

At press time, LUNA was trading at $2.76. LUNC on the other hand was trading at $0.00027912, while USTC was trading at $0.03491232.