LUNA was one of the four largest cryptocurrencies in the world that managed to reach a historical price of US$118.03, but in 24 hours it lost all its value.
As TerraUST founder Do Kwon fought against all odds to save the failed stablecoin, his wife sought police protection when the cryptocurrency went worth a penny on the dollar , according to reports.
South Korean media outlet MoneyToday reported that an unidentified person broke into the apartment building, rang the doorbell to ask for Kwon , and then left the premises when told that he was not there. The wife reportedly told police that the location of her private residence became public after the LUNA project began to unravel.
Kwon’s wife is now under police security after she requested emergency protection, police in Seoul’s Seongdong-gu district told Forkast .
These developments come amid a crypto crisis and the surprising drop in the value of LUNA, a cryptocurrency that served to prop up and maintain TerraUST ‘s dollar peg .
5/ There are multiple proposals on Agora on the best steps to move forward for the community – after having read many of them, I’ve put down my thoughts of what I think the best steps are: https://t.co/pJNXATzllz
— Do Kwon 🌕 (@stablekwon) May 13, 2022
Consequences of the LUNA project
Kwon, who developed a reputation for shrugging off criticism and attacking his opponents, is now compared to Elizabeth Holmes , who was found guilty of fraud for Theranos hoax . Some critics indicate this case may trigger major lawsuits and even criminal proceedings surrounding the collapse of LUNA.
TerraUST was designed to trade at one-to-one protection against the dollar, but without some form of collateral to back its value, as is the case with Tether .
Instead, it employed an algorithmic process of creating and then destroying its own supply of LUNA digital currencies, which served as a kind of buffer. When the project began to fail, he applied a protocol to stabilize it by minting more LUNA, which means, inflation . The rest is history.