In May 2022, the collapse of Terra the algorithmic stablecoin Terra as well its ecosystem created a huge crisis in cryptospace. Massive losses were also experienced by the crypto industry due to extreme crypto winter. The industry suffered huge losses, including billions in dollars, as many crypto investors lost their faith.
The space is seeing a gradual revival, with many crypto assets and businesses releasing their chains. Some participants are beginning to see the potential for hope in rebuilding and consolidating value. The emergence of events and other activities within the industry may also help to make cryptocurrency more resilient.
Terra made its return with Terra Classic (LUNC), as well as the rollout of Terra recently (LUNA). Do Kwon (co-founder Terraform Labs), is facing more accusations. However, the balance of the LUNA eco system remains in flux. Kwon was accused that he had been on the lam since the collapse of the LUNA eco-system.
Kwon Responds to the Allegations of Hiding
Terra Chief, however, took to Twitter to address the allegations of him hiding from authorities. He said he had not made any effort to hide anywhere, explaining that he had been in public places like malls and on walks in the past weeks but didn’t run into anyone.
Do Kwon was officially notified by the International Criminal Police Organization Interpol. The report led to the collapse of Terra Classic’s (LUNC), and Terra Nova (LUNA) prices.
A previous report suggested that Do Kwon might return to South Korea. It is likely that Do Kwon’s international passport was revoked by the Foreign Ministry.
According to reportKwon must be back in South Korea within the next two weeks if the operation is successful. Additionally, South Korean Prosecutors made public the Interpol request to law enforcement worldwide to arrest Do Kwon immediately.
Reacting to Kwon’s Twitter post, a user asked the Terra Chief his opinion regarding the Interpol Red Notice. Kwon replied that he searched on the Interpol website for such information but did not find it.
Possible reasons for the price surge in Terra Token
Following Kwon’s statement, the Terra tokens’ performance has been impressive. But that’s the entire reason for the surge. Binance, the world’s largest crypto exchange, also supported the Terra burning scheme.
Terra Classic will be burned to offset a portion of the trading fees. The burnt rates will go to the LUNC-burn address.
Terra Classic (LUNC), made a 61% reclaim its value in a span of 24 hours. Its trading volume jumped 250% to $2.29 trillion in the 24 hours preceding.
The Terra (LUNA) recently launched also saw a positive trend. It recorded a positive trend within just 24 hours. Its average trading price reached $2.68 and the price rose 30%. The trading volume stands at $730million, which is an increase of around 204%.
Pixabay featured image, Chart from TradingView.com