Investors Continue to Trade LUNA Despite Massive Crash


Investors continue to trade the LUNA token despite the massive drop as the coin loses 99% of its value from $62 on May 9 to less than a cent on May 14.On May 20, LUNA remains the most trending cryptocurrency searched on CoinMarketCap.

With a market capitalization of $918 millionLUNA is trading at $0.00013 per coin. The coin is up 1% in the past 24 hours and up 75% last week.

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It is worth noting that although the price of this cryptocurrency has fallen dramatically in recent days and South Korean officials wanted to punish the inventor for $78 million in tax avoidance, we are seeing the coin trend higher than ever before.

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 within four days. As a result, the stablecoin lost $18 billion. Not only did this affect the stablecoin UST, but all the networks built on it, such as LUNA, whose price plummeted from $62 per coin to a fraction of a cent.

LUNA is currently trading at $0.00013 up 1% | Source: LUNA/USD price chart of Tradingview.com

Tax authorities fine LUNA founder for tax evasion

To investigate this, South Korean regulators, the Financial Supervisory Service and the Financial Services Commission have called the local cryptocurrency exchanges to submit the transaction details.

The information requested from the local exchanges includes trading volumes for LUNA and UST, as well as the number of investors who have suffered losses as their investments declined during this period.

About the data request, a local exchange operator, Yonhap said;

It appears that they have gathered this information to minimize the harm to investors in the future.

The Korean National Tax Agency has found that Terra’s parent companies have avoided paying corporate and income taxes. The company moved LUNA from its software company Terraform Labs to the Luna Foundation Guard (LFG) in Singapore to avoid tax.

Do Kwon Was fine of $78 million by the IRS for acquiring and selling $3 billion in Bitcoin LFG. In addition, the Terra inventor could face further fines from the tax authorities.

The NTS asked Do Kwon and Daniel Shin to pay $100 million in taxes in December. However, the two men refused because their company, Terraform Labs, is based in Singapore. The NTS states that all Terraform Lab’s operations are controlled from South Korea, but the two men claim that their operations are primarily conducted in Singapore.

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Additionally, just a few days before Terra collapsed, Do Kwon attempted to disband Terra’s Korean entities. There is speculation among onlookers as to how long before the chain crumbled, Do Kwon was preparing for Terra’s demise.

Terra founder is being sued by 200,000 people in Korea who invested in LUNA or UST.

Featured image from Flickr and chart from Tradingview.com

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