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Terra governance system passes plan to burn 1.3 billion UST tokens

Quick Take Terra’s core developers got approval to burn 1.3 billion UST from its community pool following a governance vote. This amounts to roughly 11% of the existing 11.2 billion UST supply. The Terra governance system has voted to approve a proposal to burn all TerraUSD (UST) tokens held in the project’s community pool and UST deployed for past liquidity incentives on Ethereum. This amounts to more than 1.3 billion UST, or roughly 11% of the existing 11.2 billion UST …

Terra’s ‘vortex of death’ brings scrutiny from South Korean regulators

South Korea’s financial regulators came together on Tuesday to discuss how to address fallout from this month’s collapse of the TerraUSD stablecoin.  The Financial Supervisory Service (FSS), the Fair Trade Commission (FTC) and the Financial Service Commission (FSC) shared updates following an emergency meeting held at the National Assembly, according to local news reports.  TerraUSD, an algorithmic stablecoin on the Terra blockchain known by its ticker UST, de-pegged from the dollar in catastrophic fashion this month, destroying more than $40 …

South Korea revives ‘Grim Reaper’ financial crimes unit to investigate Terra’s collapse

A specialized financial crimes unit has been tasked with investigating last week’s collapse of the Terra blockchain’s main cryptocurrencies while founder Do Kwon faces hefty tax fines, according to South Korean media reports. The group, consisting of prosecutors and employees from the Financial Services Commission and the Financial Supervisory Service, will investigate the methods Terraform Labs used to attract investors, SBS News reported on Wednesday.  The unit’s accuracy and clinical approach has earned it the nickname “Yeouido Grim Reaper,” after …

Billions of Luna minted as supply grows 20-fold in four days

The supply of Luna (LUNA) has increased by more than 20 times over the last few days, as the effect of TerraUSD (UST) losing its peg to the US dollar continues to take its toll. This massive supply increase has accelerated the fall in Luna’s price, which is down 99% in the last two days. And if the price of Luna continues to fall, its supply will also continue to increase.  Why is this happening? To understand what is going …

Terra, Luna and UST: How we got here

Crypto history was made this week as one of the most popular stablecoins, TerraUSD (UST) lost its peg to the US dollar and then, over the course of a few days, collapsed below $0.30. The stablecoin began to lose parity with the US dollar over the weekend. Despite expensive attempts this week by UST’s backers to maintain the peg, the coin has fluctuated wildly in price and has failed to regain its peg.  As of writing, UST is now trading …