Terra is a Forgotten Crypto! Do Kwon’s Wrongdoings Don’t Affect the Market

Do Kwon's whereabouts are unknown, although, the co-founder of Terra tokens denied rumors of being on the 'run' from government agencies.

Terraform Labs CEO Do Kwon is at risk of an Interpol red notice. An arrest warrant has been issued by the Seoul Southern District Prosecutors Office against Kwon who is the forefather of TerraUSD algorithmic stablecoin and sister token Luna that wiped out reportedly $60 billion in the cryptocurrency market. Kwon's whereabouts are unknown, although, the co-founder of Terra tokens denied rumors of being on the 'run' from government agencies. But Terra LUNA being the long-forgotten cryptocurrency, wrongdoing of Do Kwon won't affect the crypto market.

Since the crash of Terra LUNA a few months ago, Don Kwon has been under investigation by authorities regarding his involvement. His stablecoin imploded, costing crypto investors billions of dollars. About $40B was lost when the stablecoin crashed. The South Korean authorities have been investigating the case, and Don Kwon is now wanted to answer some of the allegations.

The arrested warrant was released a few hours ago of this writing, and this brought the Terra and LUNC coins, which are associated with Don Kwon, to a sharp decline. As of writing, Coinmarketcap shows that Terra LUNA had declined 38% in the past 24 hours. Terra Classic (LUNC) has also plummeted by 22% during the same period.

Although the market had been bearish, the Don Kwon arrest warrant triggered the massive selling pressure that Terra LUNA and Terra Classic (LUNC) are experiencing today.

On 5 May, the crypto asset Terra — also known as Luna — was trading at US$80 a coin. On 7 May, UST, pegged against the US dollar, started falling on all crypto platforms across the globe. On 9 May, its value had fallen to 35 cents after a massive sell-off and on the other hand, Luna lost all its value and fell to almost zero. UST investors lost almost US$45 billion in just a matter of days. This sell-off in one coin triggered a broad sell-off in the crypto market globally and investors started pulling out their money from crypto assets and parking their money in safer ones, like gold.

But it doesn't stop the growing adoption of digital currencies that will have a profound impact on the market. The popularity of virtual cryptocurrencies such as Bitcoins, Litecoins, Ethers, and many more are expected to drive the market in the forthcoming years. People from developed countries are adopting the easy and flexible transactional method offered by cryptocurrencies.

Cryptocurrencies you won't regret buying in 2022

Ethereum

As known to crypto investors, Ethereum is ranked as the second largest cryptocurrency. In addition to this, it also finds its place in the list of the top cryptocurrencies worth investing in. This cryptocurrency's potential applications, particularly the smart contracts that automatically execute when conditions are met are worth a mention.

Polkadot

The very ability of Polkadot to seamlessly connect all heterogeneous blockchain networks has grabbed eyeballs. This is one of the major reasons why there are hundreds of projects that are being built on the Polkadot ecosystem.

Cardano

Cardano has been an impressive altcoin. It has seen stunning growth in its value over some time. With its lesser transaction time and energy consumption, you now know why numerous projects are relying on Cardano.

Solana

Solana is yet another cryptocurrency that has succeeded in fetching huge returns for investors.  It works with a blend of proof-of-stake and proof-of-history mechanisms. What cannot go unnoticed is the fact that it has outshined the rest in the area of decentralized finance (DeFi), decentralized apps (DApps), and smart contracts.

Tether

Well, Tether needs no special introduction. This stable cryptocurrency has always been a go-to cryptocurrency for those investors who aren't willing to take many risks. Tether's value is considered to be more consistent than other cryptocurrencies which is why it is favored by a lot of investors considering how volatile the cryptocurrency market is.

Flux

Flux is the new generation of scalable decentralized cloud infrastructure. Simply develop, manage, and spawn your applications on multiple servers at once. It will be ready for Web 3.0, Dapps, and more. The Flux Ecosystem is a fully-operational suite of decentralized computing services and blockchain-as-a-service solutions which offer an interoperable, decentralized, AWS-like development environment.