Claim BonusS.Korea Ramps Up Terra Crash Investigation, Will LUNA 2.0 Be Affected?
South Korea is ramping up its investigation into the Terra crash, with prosecutors recently summoning employees of Terraform Labs, according to reports from local media.
The Terra blockchain has returned with the launch of a new Luna token and airdrop on Saturday. However, their complication related to the collapse of Luna Classic and USTC is getting intensified.
LUNC launched even after its pilot model failed
According to reports, the Seoul Southern District Prosecutors’ Office has called in all the people involved in the development work of the Terra in the past. Some key material related to the case has been collected in the inquiry. Meanwhile, the report claims that Do Kwon forced the launch of the token while he was warned not to do so.
An employee of the Terra has stated that CEO Kwon was notified that the chain can fall anytime. However, he still decided to go live with the launch. As per the report, this employee was part of the early development of LUNA back in 2019. The inspection revealed that there was an echo of voices that were against the launch. Even the pilot model of the blockchain failed within the company.
The statement pointed out that investors were to pay tens of percentage points of interest and that too without a stable collateral or profit model. Investors may come in at first by after some time it would have to fall. The model cannot maintain the interest payments and value fluctuation.
Terra 2.0 price falls drastically
A similar structured digital currency named “Basis Cash” developed by Terraform labs collapsed in the same way. Basis cash’s price fell intensively in just two or three months after the inceptive price jump. Meanwhile, the price of LUNA classic also fell by over 90% after the release.
Coincidently, Terra’s newly launched LUNA token’s price fell by around 70% since the airdrop went live. The token is trading at an average price of $6.15 after being listed at an initial price range of between $17-$18.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Morgan Stanley to Launch Crypto Wallet Amid Plans for BTC, ETH, SOL ETFs
- Bitcoin, Ethereum Options Worth $2.2B Set to Expire Tomorrow Amid Potential Trump Tariffs Ruling
- Crypto Markets Eye Rebound as Fed Completes $40B in Reserve Management Purchases
- Scott Bessent Calls for More Fed Rate Cuts in 2026 as Miran Backs 150 bps Cut
- Breaking: U.S. Initial Jobless Claims Rise to 208K, Bitcoin Drops
- Tesla Stock Price Prediction for Jan 2026 Ahead of Q4 Earnings Report
- Ethereum Price Eyes a 30% Surge as Vitalik Buterin Names it the ‘World’s Heartbeat’
- XRP Price Prediction After Spot XRP ETFs Record the First Outflow in 36 Days?
- XRP vs Solana Price: Which Could Outperform in January 2026?
- Meme Coin Price Prediction For Jan 2026: Dogecoin, Shiba Inu And Pepe Coin
- Pi Coin Price Eyes Rebound to $0.25 as Top Whale Nears 400M Milestone
