In November 2021, Bitcoin and other cryptocurrencies soared to their highest values ever. However, a dramatic turn of events on May 9, 2022, involving the crash of cryptocurrency LUNA and the depegging of Terra’s stablecoin UST, initiated a severe downturn in the crypto market, often referred to as the “crypto winter.” Amidst this turmoil, Terra’s Do Kwon became a controversial figure, eventually going into hiding and later being apprehended in Montenegro with false documentation.
International Extradition Tug-of-War Over Do Kwon
The arrest of Do Kwon led to a legal tug-of-war, with both the United States and South Korea vying for his extradition. A recent reversal by an appeals court halted his extradition to the U.S., a temporary win for Kwon. However, South Korea has intensified efforts to secure his transfer. The latest development from Montenegro’s courts approves extradition to South Korea, although the final outcome remains uncertain.
In response to these events, the price of Terra Classic (LUNC) experienced a 4% surge, indicating investor optimism. Despite the uptick, the trading volume showed a notable 40% decline, suggesting a cautious market approach among traders. LUNC’s market capitalization climbed to $782 million, positioning it at 113th in market rank.
LUNC and USTC Prices Show Distinct Reactions
The price movements of LUNC and its related stablecoin USTC varied in response to the unfolding legal saga. While LUNC’s price increased, trading at $0.00013344, USTC also saw a modest 3% rise, trading at $0.02603. Both cryptocurrencies, however, experienced drops in trading volume, with USTC’s volume decreasing by 37%. This mixed reaction highlights the ongoing uncertainty and caution in the crypto market following the recent upheavals.