LBank Co-founder Claims LUNA Crash Brought on Present Crypto Winter

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  • LBank Co-founder claims that the crypto winter was brought on by the Luna collapse.
  • Johnason Chan thinks that Terraform Labs closed its companies to keep away from taxation.
  • Johnason Chan clarifies that every one these are but to be confirmed and simply rumour at this level.

Johnason Chan as Co-founder of Lbank, claims that the acute crypto market circumstances presently taking place had been brought on by the collapse of Terraform Labs’ Terra (LUNA) and TerraUSD (UST).

In sharing what he thought concerning the current crypto winter, Johnason Chan blamed it on the Terraform Labs and its infamous algorithmic stablecoin and crypto.

Notably, the then TerraUSD, or UST, collapsed when buyers fled the stablecoin after costs of most digital currencies plummeted in Could. In its downfall, UST introduced its sister token Luna down with it.

Following the implosion of LUNC and USTC, all types of panic in digital property surrounded the area. Some crypto analysts consider that the incident dragged down an already bearish market, which right this moment can nonetheless be felt.

Based on items of knowledge fed to CQ, Johnason Chan echoed this sentiment that Luna brought about quite a lot of buyers to lose cash, initiating the crypto winter.

Johnason Chan additionally thinks that Terraform Labs closed its companies to keep away from taxation. Apparently, a number of experiences have additionally claimed that Do Kwon’s Singapore-based firm shut down its South Korean department final 12 months to allegedly evade paying taxes.

Whereas the actual causes behind Terraform’s shut down haven’t surfaced but, South Korea’s nationwide tax company handed the corporate a hefty $78 million penalty for tax evasion prices.

Lastly, the LBank govt speculates Terraform is guilty for the present bearish market as a result of Do Kwon’s firm intentionally dumped the worth of Luna since they’re conscious that the liquidity was large and it was simple to brief Luna.

Nonetheless, Johnason Chan clarifies that every one these are but to be confirmed and simply rumour at this level.

The Terra blockchain has since formally halted, and UST remained de-pegged from the US greenback. In the meantime, the unique Luna has been rebranded to Terra Basic, which is sort of down by 90% from its all-time excessive of $18.87.

Regardless of the crash of LUNA, a number of exchanges confirmed their help for LUNA 2.0. LBank was one of many main crypto exchanges that welcomed the launch of Terra Basic (LUNC). On Could 26, Do Kwon himself acknowledged the LBank help of the launch of Terra 2.0 and its subsequent token airdrop.

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