Do Kwon summoned to parliamentary hearing following UST and LUNA crash

The dramatic fall of Terra (LUNA) along with the algorithmic stablecoin UST has been a major talking point among the crypto industry. And now South Korean conservative party has requested a parliamentary hearing on the matter.

Korea’s conservative party requested to have a hearing about the Terra incident. The politician noted Korean exchanges each reacted differently to the crash. He wanted to invite both Do and the exchanges to learn more details. https://t.co/3ezNlTFzzP

— Doo | StableNode @Permisionless (@DooWanNam) May 17, 2022

According to a local news report, Korean exchanges responded differently to the collapse, with the National Assembly’s Political Affairs Committee on Tuesday summoning Terraform Labs co-founder Do Kwon for a parliamentary hearing regarding the issue. The committee’s representative, People’s Power’s Yoon Chang-Hyeon, said:

“There is a part that raises questions about the behavior of exchanges during the crash.” “Coinone, Korbit, and Gopax stopped trading on May 10, Bithumb on May 11 stopped trading daily, but Upbit did not stop trading until May 13.”

He noted that “as the legislation is delayed, investors’ losses are increasing,” and “that the authorities continue to see the huge loss of investors and are helpless to protect investors.” Rep. Yoon suggested that:

“We should bring related exchange officials, including Terra CEO Kwon Do to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors.”

Following the historic de-pegging of its algorithmic stablecoin, UST, and the subsequent death spiral that plummeted LUNA tokens to practically nothing, Kwon has tabled a plan to save the ecosystem.

Related: Polygon and others extend helping hand to Terra blockchain projects

Yesterday Kwon suggested Terra ecosystem be forked into two chains, with the current network known as “Terra Classic” (LUNAC) and the new chain known as “Terra” (LUNA).

Both chains will coexist, but the old tokens will be rebranded as LUNAC while the new ones will be known as LUNA according to Kwon. The launch of the new chain will necessitate that Terra developers airdrop new LUNA tokens to holders of the old LUNAC and UST, as well as developers after the plan, is put into action, Kwon added.