Terraform Labs’ Luna token got here to prominence in December 2021, when its worth started to rise from $5 to a excessive of $116 in April 2022.
Followers of Luna grew to become often known as “Lunatics”,, exterior with Mr Kwon known as their “king”.
Then instantly, on 9 Might 2022, it collapsed, shedding 99% of its worth in simply 48 hours.
It was algorithmically linked to its sister coin, TerraUSD, which was a stablecoin, that means it was meant to remain at at a price of $1.
However the worth of TerraUSD plummeted to about $0.02 – which then precipitated the Luna coin to nosedive.
The crash led to shockwaves across the crypto market, with buyers pulling billions of {dollars} from different cryptocurrencies in concern of an analogous crash.
It’s estimated that about $400bn was wiped from the worth of different cryptocurrencies comparable to Bitcoin.
Asserting the chapter submitting, Terraform Labs chief govt Chris Amani mentioned: “This motion is important to permit us to proceed working towards our collective objectives whereas resolving the authorized challenges that stay excellent.”
Terraform “intends to meet all monetary obligations to staff and distributors throughout the Chapter 11 case and does not require extra financing to do so,” the corporate mentioned in a press release.
A Chapter 11 chapter implies that Terraform Labs can proceed to do enterprise.
The agency presents blockchain and different Web3-related providers.
The chapter paperwork,, exterior filed in Baltimore, checklist Terraform as having between $100m and $500m in property.
Additionally they say Do Kwon owns 92% of the shares of the corporate, together with his co-founder Daniel Hyunsung Shin proudly owning the opposite 8%.
