Do Kwon Summoned To Parliamentary Hearing After Terra Collapse
The downfall of Terra (LUNA) and the algorithmic stablecoin UST has been crypto industry’s talking point the past week or so. South Korean Conservative Party has now requested a parliamentary hearing on the matter.
Korea's conservative party requested to have a hearing about the Terra incident. The politician noted Korean exchanges each reacted differently to the crash. He wanted to invite both Do and the exchanges to learn more details. https://t.co/3ezNlTFzzP
Korean crypto exchanges responded differently to the Terra ecosystem 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, a local news report revealed.
The committee’s representative, People’s Power’s Yoon Chang-Hyeon, commented:
“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 also pointed out 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.”
Representative Yoon suggested:
“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 dramatic depegging of its algorithmic stablecoin, UST, and the subsequent death spiral that plummeted LUNA tokens to practically nothing, Kwon has come forward with a plan to save the Terra ecosystem.
Kwon suggested that the Terra ecosystem would 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, Kwon proposed. The launch of the new chain would mean 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.
