South Korean Legislator Calls for Do Kwon to Appear before National Assembly

On Tuesday, Yun Chang-hyun, a South Korean lawmaker, proposed that the Founder of Terraform Labs, Do Kwon, be summoned before the country’s National Assembly for a hearing.

The local media outlet, Newspim, reports that Yun, a right-wing legislator from South Korea’s ruling party, proposed the idea during the legislative body’s session.

The lawmaker’s proposal follows the crash of LUNA and the TerraUSD (UST), the Terra blockchain’s cryptocurrency token and algorithmic stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term, respectively.

"We should bring related exchange officials, including CEO Kwon Do-hyung of Luna, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors," Chang-hyun said during the session.

Additionally, Chang-hyun raised concerns about the differing responses of cryptocurrency exchanges in the Asian country to the crash which shook crypto communities around the world.

"There is a part that raises questions about the behaviour 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,” the lawmaker pointed out.

Emphasizing the importance of the proposed hearing, Chang-hyun said investors were losing money. He added that the legislative body should not delay its action.

The Historic Crash

Terra’s LUNA crashed more than 90% last week, dropping to almost $1 after the UST stablecoin lost its 1:1 peg to the United States dollar, plummeting to as low as $0.29.

The fall is said to be one of the biggest crypto crash for a major cryptocurrency, with many investors losing huge sums of money.

For example, Binance, the world’s largest cryptocurrency exchange by volume, had about 15 million LUNA tokens worth $1.6 billion at LUNA’s peak price in April. The exchange purchased the token in 2018 for $3 million. Following the crash, the investment is now worth less than $3,000.

2/ Binance received 15,000,000 LUNA (at peak worth $1.6 billion USD, now not much) as part of the original ($3m) invest. 560x return at peak. It still sits on the address we received at 👇. Never moved or sold.

Address:https://t.co/6HwTu6CCuB

— CZ 🔶 Binance (@cz_binance) May 16, 2022

Kwon’s attempt to save the UST by selling $3 billion worth of Bitcoin through the Luna Foundation Guard did not redeem the controversial stablecoin.

Meanwhile, yesterday the Terra creator proposed a hard fork Fork A fork can occur when a blockchain diverges into two potential paths forward, there is a change in protocol, or a scenario occurs in which two or more blocks have the same block height.Because blockchain networks are decentralized, the participants on the network must come to an agreement when it comes to things like software upgrades to a network. This is called consensus.When consensus cannot be achieved on a software upgrade, a fork occurs, effectively representing a divergence in software th A fork can occur when a blockchain diverges into two potential paths forward, there is a change in protocol, or a scenario occurs in which two or more blocks have the same block height.Because blockchain networks are decentralized, the participants on the network must come to an agreement when it comes to things like software upgrades to a network. This is called consensus.When consensus cannot be achieved on a software upgrade, a fork occurs, effectively representing a divergence in software th Read this Term to the Terra blockchain. Kwon suggested that the old chain be called Terra Classic (LUNC) with its token re-labelled as Luna Classic or $LUNC.

However, he submitted that the new blockchain could be called 'Terra' with a token Luna or $LUNA and without algorithmic stablecoins.