Investors Continue To Trade LUNA Despite Massive Crash
May 20 2022 - 3:00PM
NEWSBTC
Investors continue to trade the LUNA token despite its enormous
fall, seeing the coin lose 99% of its value from $62 on May 9 down
to less than a cent by May 14. However, on May 20, LUNA remains the
most trending cryptocurrency searched on CoinMarketCap. With a
market cap of $918 million, LUNA is trading at $0.00013 per coin.
The coin has gained 1% in the last 24 hours and 75% last
week. Related Reading | Bitcoin Selling Pressure
Continues As Long-Term Holder SOPR Spikes Up It’s worth noting that
even though the price of this cryptocurrency had fallen
dramatically over the past few days and South Korean officials were
looking into penalizing its inventor for $78 million in tax
avoidance, we see the coin trending higher than ever before. The
South Korean authorities are investigating why the value of Terra’s
dollar-pegged stablecoin, UST lost its peg on May 9. The market for
this coin quickly melted down within four days. As a result, the
stablecoin lost $18 billion. This affected not only the stablecoin
UST but also all networks built upon it, duch as LUNA, whose price
plummetted from $62 per coin down to a fraction of a penny. Tax
Authorities Fined LUNA Founder For Avoiding Taxes In order to
investigate, both South Korean regulatory bodies, the Financial
Supervisory Service and the Financial Services Commission called
the local cryptocurrency exchanges to submit the transactions
data. The information requested from the local exchanges
includes trade volumes for LUNA and UST as well the number of
investors who have suffered losses because their investments
declined during this time period. On the data request, a local
exchange operator, Yonhap, said; It seems that they collected this
information in order to minimize damage to investors in the future.
The Korean National Tax Service has found that Terra’s parent firms
have avoided paying corporate and income taxes. The company moved
LUNA from its software firm, Terraform Labs, to Singapore’s Luna
Foundation Guard (LFG) to avoid paying taxes. Do Kwon was fined $78
million by the tax department for acquiring and selling $3 billion
in Bitcoin LFG. In addition, the Terra inventor could face further
fines from the tax department. The NTS requested that Do Kwon and
Daniel Shin pay $100 million in taxes in December. However, the two
men declined since their company, Terraform Labs, is domiciled in
Singapore. The NTS argues that all of Terraform Lab’s operations
are controlled from South Korea, but the two men maintain that
their business is conducted primarily in Singapore. Related Reading
| Tether Cuts 17% Of Its Commercial Paper Holdings Over Q1 2022 In
addition, only a few days before Terra collapsed, Do Kwon attempted
to dissolve Terra’s Korean entities. There is speculation among
onlookers about how long before the chain crumbled, Do Kwon had
been prepared for Terra’s downfall. The founder of Terra is being
sued by 200,000 people in Korea who invested in either LUNA or UST.
Featured image from Flickr, and chart from Tradingview.com
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