Terra

Terra (LUNA) is a public blockchain protocol that emerged from Terra Classic. Due to limited liquidity, LUNA sell orders will not be accepted from 10:51 PM - 11:11 PM CT. Please submit your orders outside of this window.

On Thurs. May 25, Terraform Labs announced that the Terra community had approved the creation of a new blockchain, Luna 2.0. The creation of this new chain is a response to unprecedented volatility on the Luna 1.0 chain, which caused the price of the original LUNA and UST to collapse almost to zero. 

As part of the migration, the former asset LUNA will become Luna Classic, or LUNC. A portion of LUNA holders will be eligible to receive an airdrop of the new token (LUNA), per the terms outlined by Terraform Labs.

The new Terra blockchain will utilize the new LUNA, and will not include the UST stablecoin. 

On 9 May, after nearly 18 months of steadily holding its value against the US dollar, the so-called stablecoin TerraUSD (UST) became unpegged. The uncoupling triggered a cascade response that ultimately crashed UST and the Terra (LUNA).

TerraUSD (UST) is a stablecoin, which means it is a cryptocurrency pegged to a fiat currency. In this case, it is designed to be pegged to the US dollar. Stablecoins are intended to allow investors to hold crypto assets with less volatility, and trade a dollar equivalent without needing to cash out their positions. 

UST is considered an algorithmic stablecoin because instead of being backed by assets such as cash or cash equivalents, it is supported by on-chain code that facilitates a change in the supply and demand between UST and LUNA.

LUNA is the cryptocurrency that works in unison with UST in an effort to keep UST in 1:1 parity with the US dollar. One dollar of LUNA can always be converted at a 1:1 ratio to 1 UST. 

For example, if LUNA is trading at $10, then it can be redeemed for 10 UST, and 10 UST can be redeemed for 1 LUNA. If UST rises above its $1 peg to $1.01, then traders can swap 1 USD of LUNA for 1 UST. This trade burns 1 LUNA and mints 1 UST, which can then be sold for 1.01 USD. 

If UST rises to $1.02, then traders can sell for a 2 cent profit, and so on. 


In theory, increasing the supply of UST and lowering the supply of LUNA brings the price of UST back down until it reaches $1. Conversely, if UST drops below the $1 peg, then traders will be incentivized to buy 1 UST for 0.99 USD, which can then be swapped for 1 LUNA. 

This move burns UST and mints LUNA, sending UST higher towards the $1 peg.

UST lost its peg to the dollar starting on May 8th following large withdrawals of UST from Terra’s DeFi protocol Anchor. UST fell quickly, and struggled to regain its peg because the burning of UST and minting of LUNA couldn’t keep up. 

UST descended rapidly as the prolonged de-pegging led to uncertainty and a snowball effect of larger withdrawals. 


A significant share of circulating UST was locked on Anchor, a Terra-based lending and borrowing protocol that paid users 19.5% to stake UST. 

The LFG used up about $2.9 billion of its bitcoin reserves in an unsuccessful attempt to revive UST. 

WSJ 
Decrypt 
Bloomberg

*This content is for educational purposes and is not investment advice.

Luna Classic (Former Terra)

An appellate court in Montenegro is revoking the extradition of disgraced Terra (LUNA) founder Do Kwon to the US and has ordered a retrial.

Montenegro's Appellate Court Revokes Terra (LUNA) Founder Do Kwon's Extradition to the US, Orders a Retrial

Following the Montenegro Appeals Court's decision to reject the extradition requests for Terraform Labs co-founder Do Kwon, the panel from the Appeals Court has nullified the latest decision by Podgorica's High Court to extradite Kwon to either South Korea or the United States.

Legal Twist Keeps Terraform Labs' Co-Founder Do Kwon in Montenegro, Appeals Court Questions Extradition Grounds

The appellate court decided that the original decision to extradite Kwon was "affected by significant violations."

Do Kwon Will Not Go to U.S. as Montenegro Revokes Extradition

The Montenegro Court of Appeals has again canceled the approval of Terraform Labs co-founder Do Kwon's extradition to South Korea or the U.S.

Do Kwon's extradition revoked again, granted appeal by Montenegro court

The appeal is a minor victory for Kwon, who initially won an appeal in November only for it to be subsequently overturned.

Do Kwon Wins Second Chance to Appeal Extradition From Montenegro

Han Chang-joon, the former financial officer of Terraform Labs, has been extradited to South Korea from Montenegro, where he had been held since his arrest in March 2023.

Do Kwon's Former Terraform Labs CFO, Han Chang-joon, Extradited to South Korea

The former developer of Terraform Labs testified that Terra executives knowingly deceived investors, according to local media.

Former Terra developer testifies against Do Kwon at South Korean court: report

Montenegro recently extradited the former Terraform Labs financial officer Han Chang-joon to South Korea where he faces fraud-related charges. According to the Montenegro police, the decision to extradite Han was made by the country's Justice Ministry.

Former Terraform Labs Financial Officer Has Been Extradited to South Korea — Montenegro Police

Former Terraform Labs CFO Han Chang-joon faces charges in South Korea including fraud that could carry a life sentence.

Terraform Labs Former CFO Extradited From Montenegro to South Korea

Han Chang-joon was handed over to South Korean authorities following a decision by the Balkan country's Ministry of Justice.

Terraform Labs former CFO extradited to South Korea

Han Chang-joon was charged with carrying falsified travel documents alongside Terra co-founder Do Kwon last year.

Former Terraform Labs CFO Han Chang-joon Extradited to South Korea by Montenegro

Terraform Labs' bankruptcy protection would allow the company to pursue an appeal against the SEC's fraud lawsuit, the company said.

Terraform Labs says bankruptcy helps afford appeal against SEC's fraud lawsuit

Collapsed crypto company Terraform Labs has filed for Chapter 11 bankruptcy in the United States. The firm submitted a voluntary petition to the U.S. Bankruptcy Court for the District of Delaware.

Crypto Company Terraform Labs Files for Chapter 11 Bankruptcy Protection

Terraform Labs has filed for Chapter 11 bankruptcy in the U.S. amid ongoing litigation with the U.S. Securities and Exchange Commission (SEC). The company stated in its bankruptcy filing that “funds will be available for distribution to unsecured creditors.” Meanwhile, Terraform Labs co-founder Do Kwon is facing an upcoming SEC trial and extradition proceedings.

Terraform Labs Files for Bankruptcy in US Amid SEC Lawsuit

The firm said that the bankruptcy filing would enable it "to execute on its business plan while navigating ongoing legal proceedings."

Terraform Labs Files for Chapter 11 Bankrupty in Delaware

Terraform Labs recently lost a case when a U.S. judge ruled that LUNA and MIR are securities, and is currently facing a class action lawsuit in Singapore.

Terraform Labs Declares Bankruptcy in Delaware

Terraform Labs, the parent company of the defunct stablecoin TerraUSD, has submitted a petition for Chapter 11 bankruptcy protection in the United States. What Happened: Do Kwon co-founded Terraform Labs lodged an official request for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the District of Delaware, reported Cointelegraph on Monday.

Terraform Labs Files For Chapter 11 Bankruptcy Protection Amid Legal Woes Facing Co-Founder Do Kwon

Terraform Labs, the company behind the stablecoin TerraUSD, which collapsed and roiled cryptocurrency markets in 2022, filed for Chapter 11 bankruptcy in the United States, according to court papers filed on Sunday.

Terraform Labs files for bankruptcy protection in the U.S.

Terraform Labs Pte. Lte. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Jan. 21.

Terraform Labs files for Chapter 11 bankruptcy in Delaware

Terraform Labs, the company behind the stablecoin TerraUSD, filed for Chapter 11 bankruptcy in the United States, according to court papers filed on Sunday.

Terraform Labs files for bankruptcy protection in US

A federal judge on Tuesday delayed the U.S. Securities and Exchange Commission's trial against Terraform Labs and co-founder Do Kwon over an alleged $40 billion cryptocurrency fraud, to allow time for Kwon to be extradited so he can attend.

US SEC trial against Terraform Labs postponed to allow Do Kwon extradition

The trial of Terraform Lab' former CEO has been pushed back to late March after his lawyer said he faces challenges to get him to the U.S.

Trial for former Terraform Labs CEO Do Kwon pushed back to March

The U.S. Securities and Exchange Commission agreed to delay a civil trial against Terraform Labs and co-founder Do Kwon for allegedly orchestrating a $40 billion cryptocurrency fraud, so that Kwon can be extradited and attend.

US SEC willing to delay Terraform Labs trial for Do Kwon's extradition

Local courts may be facing political pressure regarding Kwon's extradition to the U.S. or South Korea, his lawyer Goran Rodic told CoinDesk.

Do Kwon Appeals New Montenegro High Court Decision Upholding Extradition Requests, Lawyer Says

Disgraced Terraform Labs founder Do Kwon is reportedly asking a judge to delay the U.S. Securities and Exchange Commission's (SEC) trial to March so he can make an appearance. In a new letter addressed to the court uncovered by Inner City Press, Kwon's lawyers ask District Judge Jed S.

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