After its massive collapse over the past few weeks, Terra (LUNA) is undergoing massive developments. Accordingly, 4 important events took place in the last 24 hours in the popular altcoin. Let’s take a look at the latest events about Terra’s native cryptocurrency together.
Burn offer for Terra LUNA Classic (LUNC)
Recently, a LUNA investor submitted a bid to the community to burn tokens. After this, a sharp increase in the price of the altcoin occurred. The Terra community has been complaining for a while that Do Kwon and Terraform Labs have abandoned LUNC and UST. The community’s initial request to implement a LUNA incinerator was denied. Also, Do Kwon and his team chose to create Terra 2.0 instead. Now, another suggestion from a LUNC investor is causing volatility in the community and crypto market. The proposal proposes a simple LUNC burning mechanism that will lead to a decrease in supply and an increase in price.
1.2% tax/burn will be applied to all LUNC transactions, both buying and selling, according to the offer. 1.2% of the respective tokens will go out of circulation each time a transaction is initiated. Thus, the supply of LUNC tokens in the market will constantly decrease. However, this burning mechanism will stop once the total LUNC token supply reaches 10 billion LUNC. Voting on the proposal is currently underway, with around 85% of voters supporting it. Supporters of these have a total of more than 133 million LUNA coins. However, 14% of those voting abstained, while 0.04% voted no. In addition to all this, it remains unclear whether the Terra team will approve the proposal.
New investigation to the Terra team
Since the collapse of Terra tokens UST and LUNA, the firm behind crypto project TerraForm Labs (TFL) is under broad scrutiny from its community. Also, now, a new one has been added to these examinations and investigations. According to a report, South Korea has launched a new investigation into TFL employees’ alleged embezzlement of the company’s Bitcoin (BTC) reserves. Bloomberg shared the report. Accordingly, TFL employees reserved the funds for themselves through a crypto wallet. The official did not disclose the owner of the cryptocurrency wallet. However, media outlet Yonhap reported that the wallet belongs to the Luna Guard Foundation (LFG), which ensures the stability of the UST.
orders from US courts to Terra team
Terra founder Do Kwon and his company, Terraform Labs, are still in legal muddy waters. Besides being investigated in South Korea, Do Kwon and TFL are now facing another legal battleground in the United States. As Cryptokoin.com reported, the SEC has sent a subpoena to Do Kwon. The cel included him attending a crypto conference in New York. However, Terra founder Do Kwon refused to attend the conference to resolve his issues with the SEC. The SEC required Do Kwon and TFL to prove that the LUNA coin is not illegally registered securities. A lower court followed suit. However, Kwon and TFL appealed the decision. Thereupon, the high court upheld the decision today.
Terra (LUNA) founder denies fraud allegations
Daniel Shin, who co-founded Terra with Do Kwon, filed fraud claims refused. Shin spoke to the Financial Times from the British media. Making a very brief statement, Shin briefly denied all fraud allegations. The founder said:
“We were not aware that there was something wrong with Blockchain’s algorithm. There has never been a case of embezzlement of users’ money in any way. We have never had such a purpose.”
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