- LUNC failed to support the algorithmic stablecoin (USTC) to peg the $ 1 value.
- The accusation of “price manipulation” is backed by the message conversation.
Terra’s co-founder Do-Kwon is constantly under the radar of many international agencies since the historical fall of the cryptocurrencies, LUNA (now LUNC), and USTC. Both the coins were and are products of the Terra blockchain.
The organization Terraform Labs (TFL) backs the cryptocurrency Terra (LUNA), Terra Classic (LUNC), and the stablecoin TerraClassicUSD (USTC). The introduction of Terra (LUNA) was made post the catastrophic crash of stablecoin and LUNC in May 2022. Since the LUNC failed to support the algorithmic stablecoin to peg the $ 1 value.
The accusation against Terra and its founders Do-Kown and Nicholas Platias has been in a surge since then. Every activity performed in past is studied using microscopic lenses, and all future proposals are being questioned indefinitely. The very recent claim on Kwon is reported by the Korean Broadcasting System (KBS) for ordering an employee to manipulate prices.
Korean prosecutor’s office official states:
“I can’t reveal the details, but it was a conversation history where CEO Kwon specifically ordered price manipulation.”
Insights of the Report
The price fluctuation in the crypto market fully depends on the coin’s performance, popularity, and customer base. Surge and decline both depend on the above attributes, whereas DoKwon is said to break these constraints by immorally trying to increase the price using the algorithm.
In Jan 2021, the CEO publicized the stablecoin will maintain stability with the help of the sister coin (LUNC’s) price and supply volatility. This is now seen as just a fiction and publicity stunt.
The prosecutor backs the accusation with the message conversation between Do Kwon and an ex-employee of the Terra firm.
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