Luna collapse causes chaos
Terraform Labs CEO Do Kwon / YonhapBy Lee Min-hyungThe collapse of Terra and Luna cryptocurrencies is causing chaos around the world, triggering a domino effect of sequential defaults from companies that invested in the ill-fated stablecoin and its sister token.Three Arrows Capital, a Singapore-based crypto investment company, defaulted on Monday after failing to repay more than $670 million in crypto loans. Earlier, the crypto-focused hedge fund lost $200 million it had invested in Luna.The company's financial status got worse after the recent crypto downfall. Prices for not just alternative coins, but major ones such as Bitcoin and Ethereum, the world's two most valuable cryptocurrencies in market capitalization, also declined sharply in the wake of the Luna shock in May.This escalates fears that more crypto companies and Luna investors may follow a similar path as the hedge fund in case the ongoing crypto winter lasts longer than expected.Earlier this week, hacktivist group Anonymous sent a warning message to Do Kwon, founder of the two coins and CEO of Terraform Labs.“Do Kw
Jun 29, 2022By Lee Min-hyung