Luna Financial News

Disclaimer: The text below is a press release that was not written by Cryptonews.com.

As the rest of the cryptocurrency market gradually moves on from the aftermath of the collapse of Terra’s LUNA and UST, regulators across the globe have become increasingly skeptical of digital assets and the risks they pose to investors.

The month of May witnessed the epic Terra, now Terra Classic [LUNC] collapse. This triggered massive liquidations in the crypto market. Many investors lost a significant portion of their earnings as tens of billions were wiped off the market in a matter of days.

Disclaimer: The text below is a press release that was not written by Cryptonews.com.

Terra Classic [LUNC] HODLers woke up to a pleasant surprise on the morning of 27 June when the infamous hacker activist group known as ‘Anonymous’ announced that they are looking into Do Kwon’s crimes.

Many cryptocurrency-based firms have faced the wrath of a crypto meltdown that saw LUNA drop to zero. Interestingly,  Three Arrows Capital (3AC), the beleaguered cryptocurrency firm tops the chart. In a WSJ report, the crypto hedge fund confirmed that it had suffered heavy losses in the recent market downturn.

On the back of LUNA and UST’s collapse in May, hacktivist collective Anonymous has vowed to “make sure” Terra Co-founder Do Kwon is “brought to justice as soon as feasible.”

The current outlook of the digital currency market ecosystem is considered a promising one for investors, who have been repositioning their mindsets for a long ‘crypto winter’ ahead.

Despite facing the music over the Terra fiasco, Do Kwon seems to be quite optimistic about the future. The CEO of Terraform Labs recently expressed “great confidence” in rebuilding the empire that crashed last month. Notwithstanding the crypto-market’s recent bearish trajectory.

Bitcoin’s crash in the second week of June appeared to have been equivalent if not more intense than its crash in May. The May crash was triggered by LUNA and UST’s death spiral, but the market did not have such a major black swan in June. There were a few FUD-inducing headlines that seem to have been enough to encourage major BTC sell-offs.

A controversial stablecoin launched just before the collapse of a similar token called terraUSD is struggling to maintain its peg to the U.S. dollar.

TerraUSD's paired token, Luna, plunged in value last month.

"For us, it's just thinking about the right opportunities as the market turns," Kanav Kariya said.

It is true the bear market is raining down on the entire cryptocurrency market. But the devastation has been more painful for some. Celsius is certainly a leading highlight of the crippling crypto institutions that is rumored to be edging towards insolvency.

"We are taking this necessary action for the benefit of our entire community in order to stabilise liquidity and operations while we take steps to preserve and protect assets," the company wrote in a memo to users.

As the cryptocurrency ecosystem gradually recovers from the impact of the collapse of Do Kwon’s LUNA and his UST stablecoin, the suspension of withdrawals, swaps, and transfers between accounts on Celsius as a result of “extreme market conditions”, sent the entire market spiraling downwards on Monday (13 June).

On June 13 cryptocurrency prices plunged deeper into bear market territory after Bitcoin (BTC) sliced through its current trading range and briefly touched $22,600, the lowest level seen since December 2020.

It is roughly one month since LUNA and UST crashed. There have been significant changes during that time, including a plan to keep LUNA alive through a fork. The latter resulted in LUNA 2.0 and LUNA Classic.

It is not only Terra that wiped off $40 billion from investors kitty, as its native token Luna plunged to some fractional cents after from $118 a few weeks ago. Other altcoins have also plunged upto 90-95 per cent from their peaks.

Terra blockchain launched a new digital token to compensate investors burned by one of crypto’s biggest busts, the blows have kept coming. Luna 2.0, as the coin is known, emerged out of the ashes of crypto entrepreneur Do Kwon’s ecosystem, which collapsed after the TerraUSD algorithmic stablecoin at the center of it dropped from its dollar peg in early May. But any hopes of a quick recovery for investors who lost billions of dollars in the crash are fading, with the token losing more than half of its value in the past week alone, based on data from CoinGecko. Scrutiny from securities regulators in the US and police in South Korea is adding to the woes. The US Securities and Exchange Commission is investigating whether the marketing of TerraUSD violated federal investor-protection regulations, Bloomberg News reported Thursday. In Seoul, police are examining allegations that staff of Luna backer Terraform Labs embezzled Bitcoin holdings amassed to help defend TerraUSD’s peg to the dollar.

The U.S Securities and Exchange Commission has launched an investigation into the Terra crash. The Terra explosion is one of the biggest busts in the crypto history. The probe also investigates the marketing of the native TerraUSD token.