South Korea is stepping up its investigation into the Terra (LUNA) collapse, with prosecutors recently summoning Terraform Labs employees, local media reported. Terra Blockchain is back with the launch of a new LUNA token and airdrop on Saturday. However, the LUNA 2.0; LUNA Classic and its complications with the collapse of USTC intensify. Here are the details…
LUNC was launched despite its pilot model failing
According to reports, the Seoul Southern District Attorney’s Office has summoned all the people involved in Terra’s development work in the past. The investigation collected some important material related to the case. Meanwhile, the report claims that Do Kwon forced the token to launch even though he was warned not to do so. An employee of Terra stated that CEO Kwon was informed that the chain could fall at any time. However, he still decided to live with the launch. According to the report, this employee was part of LUNA’s early development in 2019.
A review revealed that voices opposing the launch were echoing. Even the pilot model of blockchain failed internally. The statement pointed out that investors will pay tens of percentage points in interest without a fixed collateral or profit model. Investors may come in at first, but it will have to drop after a while, it said. The model cannot sustain interest payments and value volatility.
LUNA 2.0 price drops drastically
A similar structured digital currency called “Basis Cash” developed by Terraform labs has likewise crashed. The underlying cash price fell heavily just two or three months after the initial price hike. Meanwhile, the price of the LUNA Classic has also dropped over 90 percent after its launch. Coincidentally, the price of Terra’s newly released LUNA token has dropped nearly 70 percent since the airdrop took place.
Token is trading at an average price of $6.15 after being listed in a starting price range of $17-18. Over a 36-hour period, LUNA’s trading volume also fell, along with its price, posting a 64 percent drop in activity from about $393.4 million to $145.3 million.
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