A representative of the South Korean People Power Party Yun Chan-Hen called for parliamentary hearings on the recent collapse of the Terra ecosystem. About this сообщают local media.
According to him, the meeting must include Terraform Labs CEO Do Kwon and representatives of Korean cryptocurrency exchanges. Together they will examine the causes of the situation and measures to protect investors.
Chan-Hen noted that some platforms continued trading the stablecoin after its sudden collapse. Coinone, Korbit and Gopax halted trading on May 10, Bithumb on May 11, and Upbit on May 13.
“Upbit, which was the last to halt trading, earned about 10 billion won ($7.8 million) in fees over these three days,” added Yun Chan-Hen.
Yonhap News Agency, citing anonymous sources, reported that financial regulators began “emergency checks” of local bitcoin exchanges.
According to the available data, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) asked the exchanges for information on UST and LUNA transactions, including trading volumes and the number of investors. The agencies also asked the platforms to conduct a self-analysis of the stablecoin’s collapse and provide countermeasures for similar situations.
On May 8, UST lost its peg to the US dollar. This occurred amid outflows from the Anchor protocol due to the deposit rate falling to 17.87%.
On May 10, the asset’s quotes fell below $0.62. The decline continued on May 11, after which the collateral for UST, the token LUNA, collapsed to $0.30. At the time of writing, the latter stood at $0.00018, and the stablecoin at $0.09, according to CoinGecko.
Despite the crisis, the team behind Terraform Labs hopes to restore public trust. Earlier Do Kwon proposed conduct a network hard fork. The vote is scheduled for May 18.
One Terra investor — Su Zhu of Three Arrows Capital — backed the initiative, tweeting: “Terra2 coming soon”.
In turn, Binance CEO Changpeng Zhao doubted the success of Terra’s hard fork, saying it “has no value”.
Read ForkLog’s Bitcoin news in our Telegram — crypto news, prices and analysis.