Co-founder of Terra Coin arrested.. Price of Terra Luna all out in one day!!

The two primary cryptocurrencies of the Terra Network are LUNA and TerraUSD. Both these coins saw a huge price rally in May last year. Subsequently, the crypto market also witnessed an unprecedented bloodbath.

It’s a sad story that nearly $40 billion of investors lost their money in Terra Luna Coin in a matter of days. Investors accused Kwon of fraud after the price hike. Following this, an arrest warrant has now been issued against him.

South Korean prosecutors said in a statement that arrest warrants have been issued for six people, including Do Kwan, who is said to be living in Singapore.

What caused the collapse of Terra Luna?

Terra Luna Coin posted a 100% rally at the end of May, only to drop 100% the next day. The main reason for that is said to be the arrival of USD coins which are currently dominating the crypto market.

Already, Tether USD, USD Coin, Finance USD Coin hold the top 10 positions in the crypto market. Terra CryptoCoin saw a sharp decline on May 5 due to the arrival of the TerraUSD coin and the rise in the value of the dollar.

So you can see how Terra UST Coin differs from Terra Luna Coin.

TerraUSD is one of these algorithmic stablecoins. It seeks to maintain the same value as the US dollar using a complex seesawing mechanism with an associated cryptocurrency called Terra Luna (or Luna).

Although 1 TerraUSD should always be worth exactly 1 dollar, the value of Luna can change. Terra USD uses Luna as a counterweight to maintain its dollar peg. So you can avoid huge losses.

In this case, following Terra Luna Coin, Terra UST Coin has fallen by 100%, and arrest warrants have been issued for its administrators.

Disclaimer: Crypto products and NFTs are unregulated and highly risky. There will be no regulatory source for losses arising from such transactions.

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