Terra Financial News

The Tron DAO Reserve (TDR), the entity in charge of managing Tron-based stablecoins, aims to deploy another USD 500m worth of the stablecoin USD coin (USDC) to defend the peg of its algorithmic stablecoin USDD.

The South Korean government and financial regulators appear keen to ensure that May’s Terra ecosystem crash – an event they have dubbed the “terra/LUNA incident” – will become a watershed moment for the crypto sector, with a slew of new regulations incoming. The new head of a leading regulatory body led those vowing to implement changes, calling for the creation of a system that provides investors with more “fairness.”

One can hardly name a document more long-hoped-for as the crypto bill, co-sponsored by United States Senators Cynthia Lummis of Wyoming and Kirsten Gillibrand of New York, was for the crypto community. And, it’s finally here. Last week, Lummis and Gillibrand introduced a 69-page bill in the U.S. Senate. What’s inside? The projects of study on the environmental impact of digital assets and advisory committee on innovation, a tax structure, a mandate for analysis of the use of digital assets in retirement savings and much more.

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.

Binance.US, the sister company of global cryptocurrency exchange Binance, is facing a class-action lawsuit from investors for the sale of LUNA and TerraUSD (UST).

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.

Bitcoin (BTC)-backed exchange-traded funds (ETFs) of various types are now widely available to investors around the world. But the popularity of the funds varies, with investors in Australia showing almost no interest in trading the recently-launched ETFs there.

American regulators have waded into the aftermath of the terraUSD (UST) crash last month – and the coin's operators could face trouble at the hands of United States courts and the Securities and Exchange Commission (SEC).

The United States Court of Appeals for the Second Circuit on Thursday rejected Terraform Labs CEO Do Kwon’s dispute of a subpoena by the Securities and Exchange Commission (SEC). The federal agency was seeking documents and testimony in connection with its investigation of whether Terra used the Mirror Protocol to sell unregistered securities.

Terraform Labs, the parent company behind the collapsed Terra ecosystem, is currently under multiple investigations from the South Korean authorities.

Anchor protocol was originally designed to offer an interest rate of 3.6% but this was dialed up to 20% just a week before release to attract more investors, a core developer alleged in an interview with Korean media outlet JTBC. 

LUNA, the native token of the new Terra blockchain, has fallen consistently in the market since seeing an initial spike on its first day of trading, with industry observers keep questioning whether the attempt to revive Terra will work.

Terra investors around the world lost billions of dollars when the algorithmic-stablecoin project crashed but they recovered a small part of their bets when a new token was distributed as compensation. Investors in India aren’t as fortunate. Because the country’s tax system is punitive to crypto investing, TerraUSD and Luna token holders who got the new coin — known as Luna 2.0 — in a so-called airdrop face a double whammy. They could be taxed as much as 30% of the value of tokens received and they won’t be able to offset any gains in the new token against losses from the previous one, tax experts said. Under the new crypto tax regime, effective April 1, any income from the “transfer” of a “virtual digital asset” will be taxed at a flat rate of 30%. It does not explicitly mention how airdrops should be taxed, but Jay Sayta, a technology and gaming lawyer, and Manhar Garegrat, executive director of policy at crypto exchange CoinDCX, said the distributions can be seen as income and are subject to the tax.

UST's dramatic collapse sent shockwaves through the crypto markets — and led to probing questions on whether algorithmic stablecoins can, and should, have a place in the world of DeFi.

Terra network coin holders in India are facing a “double whammy” following the LUNAC and UST crash last month – and could be hit with 30% tax bills from the recent LUNA 2.0 airdrop.

Luna 2.0 started trading on May 28.

May 2022 was not for the faint-hearted. Even the most embattled and experienced crypto traders were tested in the first two weeks of the month on a brutal drop following the United States Federal Reserve’s announcement that interest rates would be rising by 0.5%.

If it is true that the Luna Foundation Guard (LFG) really sold 80,000 bitcoin (BTC) to defend the terraUSD’s (UST) peg during its meltdown, it is likely that USD 25,000 to USD 27,000 is the bottom of this bitcoin market cycle, according to crypto essayist and former BitMEX CEO Arthur Hayes.

Bitcoin (BTC) bulls may only need a pair of simple moving averages (SMAs) to determine if the bottom is in this halving cycle.

Dunamu, the operator of Upbit, South Korea’s biggest crypto exchange, has moved to distance itself from connections with Terraform Labs’ terra (previously LUNA, now - LUNAC) – dismissing notions that its management “may have invested directly” in the Terra network, and labeling reports as “clearly false.” And while previous reports had claimed that a Dunamu subsidiary had invested a large chunk of its founding capital into LUNAC tokens, only to sell the coins off in February last year, the firm stated that it had not liquidated the coins for cash, but had instead swapped them for bitcoin (BTC).

The Terra ecosystem’s rise and fall has had major consequences all around the world, but there’s no doubt that South Korea, the birthplace of its’ creator, was the most concerned country of them all.