Despite the massive fall in value, investors continue trading the LUNA token despite the fact that the coin lost 99% from $62 on May 9, to just a penny by May 14. However, there are still some good options.LUNA is the top-searched cryptocurrency on CoinMarketCap as of May 20.
LUNA currently trades at $0.00013 per piece, with a market value of $918million. In the past 24 hours, the coin gained 1% and 75% in last week.
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It’s worth noting that even though the price of this cryptocurrency had fallen dramatically over the past few days and South Korean officials were looking into penalizing its inventor for $78 million in tax avoidance, we see the coin trending higher than ever before.
The South Korean authorities are investigating why the value of Terra’s dollar-pegged stablecoin, UST lost its peg on May 9. Within four days, the market for this coin crashed rapidly. In the end, $18 million was lost by stablecoin. The price of the stablecoin UST, as well as all other networks that depend on it (duch as LUNA), plummeted from $62 to a mere penny.
Tax authorities fine LUNA founder for avoiding taxes
The Financial Supervisory Service of South Korea and the Financial Services Commission requested that the transaction data be submitted by local cryptocurrency exchanges.
This information is requested from local exchanges and includes trade volumes in LUNA or UST, as well a list of investors who suffered losses during that time.
Yonhap was the local exchange operator and responded to data requests.
They may have collected the information to limit future damage for investors.
The Korean National Tax Service has found that Terra’s parent firms have avoided paying corporate and income taxes. The company moved LUNA from its software firm, Terraform Labs, to Singapore’s Luna Foundation Guard (LFG) to avoid paying taxes.
Do Kwon was penalized $78 Million by the Tax Department for buying and selling Bitcoin LFG worth $3 Billion. Additionally, Do Kwon was fined $78 million by the tax department for acquiring and selling $3 billion in Bitcoin LFG.
NTS asked that Do Kwon, Daniel Shin and $100 million be paid in tax in December. The NTS requested that Do Kwon and Daniel Shin pay $100 million in taxes for December. However, they declined, since Terraform Labs is located in Singapore. The NTS argues that all of Terraform Lab’s operations are controlled from South Korea, but the two men maintain that their business is conducted primarily in Singapore.
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In addition, only a few days before Terra collapsed, Do Kwon attempted to dissolve Terra’s Korean entities. There is speculation among onlookers about how long before the chain crumbled, Do Kwon had been prepared for Terra’s downfall.
Terra founder Terra is under investigation by 200,000 Koreans who have invested in LUNA and UST.
Featured image taken from Flickr. Chart taken from Tradingview.com