Terra: Should LUNA holders worry about the twist that appears in the case of Do Kwon
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The Korean Ministry of Foreign Affairs on Wednesday (October 5, 2022) announced that Terraform Labs Pte. Ltd., Kwon Do-Hyung, also known as Do Kwon, will have his passport revoked within 4 weeks if not returned.
Well, Do Kwon has got an arrest warrant, and it is widely reported that his name has been put on the red list of the International Police.
Dokwon complaints and counterclaims
Do Kwon has been using his social media accounts to debunk reports from Korean media and other news sources since the beginning of the event.
He tweeted on September 17, just days after the arrest warrant was leaked, and insisted he had never absconded. He also stated that he and his team would cooperate with any government agency that approached them.
The co-founder of Terra reportedly locked his assets and this has been reported multiple times. Do Kwon in his tweet about him also said that none of his money is frozen.
On September 28, his team sent a statement to the Wall Street Journal saying that they believe the case has become extremely politicized and that the behavior of South Korean prosecutors shows injustice and is unfair. uphold the basic rights provided for by Korean law.
Do Kwon and his team also made it clear that whatever interpretation the Korean financial authorities have recently come up with, they still consider Luna nothing safe.
LUNA Price action analysis
In the last 24 hours, LUNA price data shows that the asset has depreciated. Opening at $2,588 on September 5, LUNA fell to close at $2,548, down 0.37% from the opening price.
At the time of writing, the discount is over 1% for the duration of the deal. It looks like $2,138 still offers solid support and $3,071 still offers resistance.
From the look of the price chart, the initial news of Do Kwon's arrest did not have much of an impact on the asset's value. But volume seems to have slowed considerably after Interpol's red list was published, and the latest news about passport expiration also seems to have triggered the negative price action.
What about LUNC?
While the model does not immediately reveal whether the Do Kwon news developments are affecting LUNC trading, it also appears to be trading lower.
However, as seen on the volume indicator, the trading volume has decreased over the past two days. Furthermore, it revealed that LUNC fell more than 2% the previous day.
Starting the day at $0.000307, it traded as high as $0.000307 before closing at $0.00300 on September 5. Its support at $0.000263 was tested in the past few weeks but seems to remain the same. Resistance seems to be in the $0.0000370 area.
As the Terra saga continues, potential investors can wait before making a decision. As a result, new investors may not be joining the ecosystem any time soon. Additionally, if investors are uncertain about the eventual resolution of the story, selling pressure could increase and growth slow.
Oct 07, 2022