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 turned often known as “Lunatics”,, exterior with Mr Kwon known as their “king”.
Then out of the blue, on 9 Could 2022, it collapsed, dropping 99% of its worth in simply 48 hours.
It was algorithmically linked to its sister coin, TerraUSD, which was a stablecoin, which means it was meant to remain at at a worth 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 worry of an analogous crash.
It’s estimated that about $400bn was wiped from the worth of different cryptocurrencies equivalent to Bitcoin.
Saying the chapter submitting, Terraform Labs chief government Chris Amani stated: “This motion is critical 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 workers and distributors throughout the Chapter 11 case and does not require extra financing to do so,” the corporate stated in an announcement.
A Chapter 11 chapter implies that Terraform Labs can proceed to do enterprise.
The agency affords blockchain and different Web3-related companies.
The chapter paperwork,, exterior filed in Baltimore, record Terraform as having between $100m and $500m in belongings.
In addition they say Do Kwon owns 92% of the shares of the corporate, along with his co-founder Daniel Hyunsung Shin proudly owning the opposite 8%.
