The sudden devaluation of Terra (LUNA) , along with that of UST (the algorithmic stablecoin), has been a major topic of conversation in the cryptocurrency market.
Additionally, at this time, the conservative party of South Korea has asked for a parliamentary hearing to be held so that they can examine the matter.
According to a report from a local news source, the exchanges provided various responses to the respective fall. On Tuesday, the Political Affairs Committee of the National Assembly issued a summons to Do Kwon, the co-founder of Terraform Labs, requesting that he appear at a hearing in parliament to discuss the matter. Yoon Chang-Hyeon, the spokesperson of the committee for People’s Power, noted that some issues are raised based on the behavior of the exchanges in the preceding days during the crash.
He went on to say that Gopax, Korbit, and Coinone had halted trading on the 10th of May, and Bithumb had stopped normal trading on the 11th of May; however, Upbit had not stopped trading until the 13th of May. In his words, as a result of the delay that has been seen in the law, the losses of the investors are rising, and although this is brought to the attention of the authorities, they are unable to safeguard the investors, as Representative Yoon has stated.
Do Kwon (CEO of Terra) was specifically mentioned as a person who should be summoned to the National Assembly so that a hearing can be held to determine why this is happening, as well as what steps should be made to ensure the safety of investors. After the historic de-pegging that took place in UST and the succeeding death spiral that was responsible for the collapse of LUNA tokens (that placed them at zero), Kwon proposed a strategy to maintain the ecosystem. This came after the historic de-pegging that took place in UST.
Kwon made the suggestion yesterday that the ecosystem of Terra ought to be split up into a few different chains. As a result of this action, he advocated that the existing network be referred to as LUNAC (Terra Classic), whereas the most recently constructed chain should be referred to as LUNA (Terra).
According to Kwon, the new tokens should be called LUNA as usual, while the old tokens should be called LUNAC. This is because both chains will function in parallel with one another. UST and LUNAC holders will be eligible for an additional airdrop of LUNA tokens when Terra’s current chain is made available.