The “People Power Party” representative, a South Korean politician Yoon Chang-Hyeon called a parliamentary hearing on TerraUSD (UST) due to its sudden collapse last week.
According to a report from South Korean Newschannel “Newspim” on Tuesday, May 17, at a plenary meeting of the National Assembly’s Political Affairs Committee, Yoon Chang-Hyeon stated;
We should bring related exchange officials, including CEO Do Kwon of Terra, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors.
Related Reading | Terra Flaw: Ethereum Creator And Binance CEO Slam Terra Via Twitter
The Terra blockchain experienced a crisis starting on May 7 when the US dollar value of its algorithmic stablecoin, UST, started to decrease. This continued over the following days until UST hit a low of below 10 cents. The Luna token, which is native to the Terra blockchain, also lost a lot of its value and is currently trading at just fractions of a cent.
According to Yoon Chang-Hyeon, something raises questions about exchanging behavior during the market crash.
He said;
Coinone, Korbit and Gopax stopped trading on May 10, Bithumb on May 11, but Upbit did not stop trading until May 13,” he said. “Upbit, which was the last to stop trading even after seeing the crash, is the No. 1 company with an 80% share. In just those three days, it earned close to 10 billion won [$7.8 million] in commission income.
Furthermore, he said that as time goes on and legislation is delayed, the investors’ loss increases. As a result, authorities are watching the loss of digital assets with helplessness.
According to Yonhap News Agency, on Tuesday, local financial regulators began “emergency inspections” of local crypto exchanges to improve investor protection following the collapse of the UST.
As per the industry sources, the Financial Services Commission (FSC) and the Financial Supervisory Service asked cryptocurrency exchange operators to share overall transactions, including volume of trading, their closing prices, and the number of relevant investors linked to TerraUSD and Luna. In addition, regulatory authorities also asked them to provide countermeasures to the market crash and analyze what caused the collapse.
An anonymous official of a local crypto exchange told Yonhap;
Last week, financial authorities asked for data on the amount of transactions and investors and sized up the exchanges’ relevant measures. I think they did it to draw up measures to minimize the damage to investors in the future.
Related Reading | Bitcoin & Energy Merge In Texas: 3 Giant Companies Announce New Mining Facility
Terraform Labs, the company behind the Terra Network, hope to regain public trust after they were hit with a major crisis. On Monday, founder Kwon proposed forking their network into a new chain because “Terra is more than UST.” They will put up the proposal for a governance vote today, May 18.
Kwon said;
We encourage Terra developers to signal support & commit to build on the fork on public channels ASAP.
Featured image from Flickr, and chart from Tradingview.com
This collaboration has a clear objective: an Ethereum-based marketplace that stands as a testament to its dedication to preserving the rightful royalties of NFT creators upon each sale.
CatherineBitfinex encountered a minor phishing attack, reassuring users of their security measures while resolving the issue and collaborating with law enforcement for a comprehensive investigation.
Hui XinIn response to the discovery of a technical glitch, Aave has taken measures to safeguard user funds, momentarily suspending market operations while prioritising the security of assets.
CatherineNamed on the Microsoft store as "Ledger Live Web3," the deceptive application misled users into believing they were downloading "Ledger Live," an interface for Ledger hardware wallets used for offline cryptocurrency storage.
DavinThis move signifies OpenSea's shift towards adopting a more agile and innovative approach to its marketplace, as articulated by Devin Finzer, the co-founder and CEO of OpenSea.
KikyoThe breach was discovered by a developer the next day, after around half a million dollars had been lost.
ClementPolice Scotland's increasing use of facial recognition technology raises concerns about privacy and ethics, prompting calls for stronger safeguards.
Hui XinSome participants at Yuga Labs' ApeFest event have raised concerns regarding eye discomfort and vision impairment, alleging that these issues stem from inadequate lighting conditions.
CatherineThe breach has since been resolved, and Bitfinex assures customers that no funds were lost.
AlexDespite publicly confessing to his actions, Eisenberg has pled not guilty to all charges.
Alex