Terra stablecoin korea. At the center of the collapse was Terra’s algorithmic stablecoin, UST, and a blockchain-based borrowing and lending protocol, Anchor. Lastly, the SEC said Kwon and Terraform Labs misled investors about the stability of the infamous algorithmic stablecoin TerraUSD (UST). It is best known for its Terra algorithmic stablecoin and the associated LUNA reserve asset cryptocurrency. The Terra co-founder who oversaw the spectacular $40 billion collapse of the algorithmic stablecoin Terra earlier this Korean exchanges will soon be required to list tokens based on the same guidelines to ensure compliance with local regulations, and make emergency decisions together to prevent another Terra Stablecoin advocates warn this is no time to throw the baby out with the bathwater, noting that currency-backed stablecoins like Tether and USDCoin held steady during Terra’s meltdown this week. It attempted to maintain its peg not by backing with fiat currency USD, but by relying on its own issued LUNA tokens as collateral. On his social media pages, the candidate wrote: “South Korea already has experience with a won-pegged stablecoin called KRT. As of late March, the LUNA stablecoin, which uses the Terra platform, was the largest decentralized finance token by market capitalization, with a theoretical market capitalization of about $34 The report will also cover the May Bitcoin (BTC) crash and conclude with our view on UST’s future. with entrepreneur Daniel Shin. LUNC price increased 8. Jul 2, 2025 · Korea’s first stablecoin, Terra (UST), created by Do Kwon, serves as a prime example. Do Kwon, a South Korean entrepreneur, hyped the Luna and TerraUSD cryptocurrencies. charges of conspiracy to Singapore-incorporated, South Korea-focused stablecoin creator Terra has signed a major Korean B2B platform to its alliance of internet marketplaces. This article offers a chronological account of the dramatic downfall of LUNA coin and the TerraUSD (UST) stablecoin, explaining the key events that led to its near-total collapse. According to a report on Econonews, a local As of late March, the LUNA stablecoin, which uses the Terra platform, was the largest decentralized finance token by market capitalization, with a theoretical market capitalization of about $34 Solana is adding the Terra stablecoin in an effort to bring "novel applications that require price-stable payments" to its high-throughput blockchain. Their failures have devastated some traders, though not the investment firms that cashed out early. Do Kwon's passport has been officially canceled by South Korean authorities. For months, the US and Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, was sentenced on Thursday to 15 years in prison for what a judge South Korean Presidential Candidates: Stablecoin War-of-Words Lee Jun-seok added that South Korean investors have already had their fingers burned with Terra’s KRW-pegged KST stablecoin. Stablecoinrefers to a range of cryptocurrencies that derive their market value from some external reference. That’s a big departure from the way that stablecoins like USDC or USDT (Tether) operate: tokens that are issued in return for (at least, according to their websites) deposits of real deposits of US dollars. KRT is built on Terra, a blockchain designed specifically to support stablecoins and leverage them in DeFi applications. 10M. S. Traditional stablecoins are backed by fiat reserves, such as the U. Token asli Terra, LUNA, digunakan untuk menstabilkan harga stablecoin protokolnya. Terra’s unique value proposition is contributing to the acceleration of blockchain in the Korean and Asian markets, while its main uses have massive potential to be used on a global scale. Montenegro on Tuesday extradited to the United States the South Korean cryptocurrency specialist Do Kwon, who is also wanted by Seoul over his firm’s multi-billion-dollar bankruptcy, officials said. с TerraClassicUSD (USTC) was originally launched as an algorithmic stablecoin within the Terra ecosystem, designed to maintain a peg to the US dollar through an automated market-Module mechanism with LUNA (now LUNC). A method to pay for transaction fees in the Terra network. Follow us for the latest updates https://x. Dec 12, 2025 · Do Kwon, a South Korean national, was co-founder of Singapore-based Terraform Labs, which developed the TerraUSD and Luna digital coins. TerraUSD, or UST Terraform Labs CEO Do Kwon allegedly ignored Terra’s design flaws to push for the launch of the UST stablecoin, according to a recent report. Bitcoin News is the world's premier 24/7 crypto news feed covering everything bitcoin-related, including world economy, exchange rates and money politics. A stablecoin is a type of cryptocurrency that aims to maintain a stable value relative to a specified asset, a pool or basket of assets. 34% in the last 24 hours. 00003715 with a trading volume of $ 19. The Terra blockchain is part of the Cosmos ecosystem and utilizes the Tendermint Proof-of-Stake (PoS) model and currently has a cap of 100 validators. Ltd. Terra has signed up an impressive set of companies willing to try out their stablecoin solution, including some of the largest food delivery, e-commerce and ticketing companies in Korea and Asia. After two major cryptocurrencies collapsed, Washington has its eyes regulation. Police in Montenegro say they have arrested Terraform Labs founder Do Kwon, who is wanted in South Korea following the $40 billion crash of the firm’s cryptocurrency. Terra Classic price today is $ 0. Terraform Labs co-founder Do Kwon sentenced to 15 years for orchestrating $40B Terra/Luna collapse. com/terra_money For more details, please refer to the Medium article published here or the claims information page here NEW YORK — Terraform Labs founder Do Kwon pleaded guilty to conspiracy to commit fraud and wire fraud Tuesday morning, three years after the dramatic $60 billion collapse of the Terra/Luna South Korean cryptocurrency entrepreneur Do Kwon will be extradited to the United States from Montenegro over the collapse of two digital tokens - TerraUSD and Luna tokens. In January 2018, Do Kwon co-founded Terraform Labs Pte. In doing so, UST supply is reduced and, therefore, the price heads back up—at least, in theory. Meanwhile, UST's founder has a plan for a new Terra blockchain. " While TerraUSD is brand new, its Korean Won pegged cousin TerraKRW (and MNT pegged stablecoin TerraMNT) has been exploding in growth and adoption in Korea, and is today the most actively adopted Onetime cryptocurrency mogul Do Kwon was sentenced Thursday to 15 years in prison after a $40 billion crash revealed his crypto ecosystem to be a fraud. About TerraClassicKRW TerraKRW (KRT) is an algorithmic stablecoin that’s designed to track the price of the South Korean won. [1][2] Despite the name, stablecoins are not necessarily stable. [4][5] The Terra blockchain, which included both UST and Luna, had stable mining incentives that were purported to create an elastic monetary policy Federal prosecutors asked for a 12-year sentence for Do Kwon, arguing the Terra collapse caused more damage than FTX and other major crypto scandals combined. Stablecoins can be categorized on the bases of their working mechanisms – crypto-collateralized, algorithmic, and fiat-collateralized stablecoins. The project was created in 2018 by Terraform Labs, a startup co-founded by Do Kwon and Daniel Shin. 36M and market cap of $ 203. . com/terra_money For more details, please refer to the Medium article published here or the claims information page here In May 2022, stablecoin Terra collapsed and wiped out almost half a trillion USD from the cryptocurrency markets. A mechanism for maintaining Terra’s stablecoin peg. Aug 13, 2025 · Their most ambitious creation was the Terra blockchain, which featured two key tokens: LUNA and TerraUSD (UST), an algorithmic stablecoin designed to maintain a 1:1 peg with the U. Background Terraform Labs is a Korean blockchain firm that created the Terra blockchain. South Korean messaging giant Kakao Corp, together with stablecoin project Terra, will launch a blockchain-based payment system. The Future of the Terra Crypto Ecosystem Terra is working toward becoming the leading ecommerce stablecoin payment and DeFi service provider in the world. A South Korean law firm, LKB & Partners, is suing Do Kwon and Daniel Shin, the founders of Terraform Labs, the company which developed Terra blockchain, on behalf of five investors with an accumulated loss of around 1. dollar. Terra's stablecoin savings account is a month delayed but the project is gaining momentum with over 2 million users on the firm's Chai payments app. Kwon had admitted misleading investors about Jan 3, 2025 · The US government finally got its metaphorical hands on Do Hyeong Kwon, the 33-year-old Korean national who built a financial empire on the cryptocurrency Luna and the “stablecoin” TerraUSD, Feb 19, 2025 · South Korea's Supreme Court has made a landmark ruling that the LUNA token and TerraUSD stablecoin don't qualify as financial investment products under the country's Capital Markets Act ¹. Terra, also known as UST, is a "stablecoin," a type of cryptocurrency that is pegged to another currency such as the US dollar. [17][18] Later in 2018, Terraform Labs released a cryptocurrency called Luna. 1 million) on several charges including fraud. The report will also cover the May Bitcoin (BTC) crash and conclude with our view on UST’s future. UST was marketed as the first genuine crypto-native stablecoin and was a distinguishing feature of the Terra network. A new stablecoin project out of South Korea, dubbed Terra, revealed it has closed a $32 million funding round led by a string of major crypto exchanges, in a press release Wednesday, August 29. Judge said he committed "fraud on epic, generational scale. Do Hyeong Kwon, co-founder of Terraform Labs, on Tuesday pleaded guilty to two of the nine charges against him in a case about two cryptocurrencies that collapsed in May 2022 and erased $50 billion in market capitalization. Staking in Terra’s delegated proof of stake (DPoS) to validate network transactions. The specified asset might refer to fiat currency, commodity, or other cryptocurrencies. This same mechanism powers Terra’s other stablecoins, including a stablecoin pegged to the South Korean won and another pegged to a basket of leading world currencies maintained by the International Monetary Fund (called Special Drawing Rights). Kwon allegedly misrepresented to investors the functionality of the Terra The South Korean former tech executive co-founded Singapore-based cryptocurrency firm Terraform Labs. [4] Terraform began selling its stablecoin, TerraUSD (UST), in 2020. It added that investors were “misled and deceived” on at least one matter involving a Korean mobile payment that was said to be using the Terra blockchain. While TerraUSD is brand new, its Korean Won pegged cousin TerraKRW (and MNT pegged stablecoin TerraMNT) has been exploding in growth and adoption in Korea, and is today the most actively adopted While the ecosystem currently supports multiple Terra currencies, including those pegged to the South Korean Won, Mongolian Tugrik, and the IMF’s SDR basket of currencies, Terra’s flagship product is its native USD-pegged stablecoin, TerraUSD (UST). The recent sell-off of the crypto market was highlighted by Terra’s LUNA/UST failure, which left investors in shambles, erased tens of billions of dollars of value in a matter of days, and most likely will induce a strict stablecoin regulatory policy response in the near future. In just a nutshell, how did Terra Luna come undone? Alexander Osipovich: The idea with the TerraUSD stablecoin was always that if it deviated from its peg, if it dropped below a dollar, there would be incentives for trading firms out there to go and execute trades that would have the impact of pushing it back to $1. The warrant also includes five others, according to a report. 4 billion Korean won ($1. Key Background Kwon is one of the founders of Seoul-based Terraform Labs, which created Terra blockchain protocol along with high yielding stablecoin TerraUSD and its companion Luna token. NEW YORK: Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated US$40 billion in 2022, was sentenced in New York federal court on Thursday (Dec NEW YORK, Dec 11 (Reuters) - Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, was sentenced on Thursday to 15 years Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, pleaded guilty on Tuesday to two U. So what is Terra and how did it happen? Pada September 2020, Terra menawarkan stablecoin yang dipatok ke dolar AS, won Korea Selatan, tugrik Mongolia, dan keranjang mata uang Hak Penarikan Khusus oleh Dana Moneter Internasional—dan Terra bermaksud untuk meluncurkan opsi tambahan. Terra is a blockchain protocol and payment platform used for algorithmic stablecoins. The South Korean-based stablecoin platform Terra has seen its market capitalization overtake better-known decentralized rival Maker's. How Terra Worked First, the rise: Terra’s innovation was to create a US Dollar stablecoin that wasn’t backed by, you know, actual money. Stablecoins Statistics: Everything you need to know from types of stablecoins, total market cap to transaction volumes, regulations & emerging models. myqugh, nm0ad, raznh, 7f1yzy, zxp2kh, ryff, tyyst, gifu, 2szw, vjoo,