South Korea is ramping up its investigation into the crash and collapse of Terra, as Korean legal bodies recently summoned Terraform Labs employees, according to reports from local media.

Terra Network is back in action with the launch of the new Luna coin and the start of its distribution from last Saturday.

However, the circumstances and complications related to the collapse of Luna Classic and USTC are becoming more acute and could spill over to the new network.

LUNC survives even after its experimental model fails:

According for local reports In South Korea, the South Seoul District Prosecutor’s Office has summoned all persons involved in Terra development work in the past.

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Some key material related to the case was also collected in the investigation.

According to the report, “Do Kwon” forced the launch of the cryptocurrency while being warned not to do so.

A Terra employee stated that CEO Kwon has been notified that the network could go down at any time.

However, he decided to start broadcasting it live.

According to the report, this employee was part of the early development of LUNA in 2019.

The investigation revealed that there were many voices opposing the launch at the time.

Even the blockchain pilot has failed within the company.

The statement indicated that investors will pay tens of percentage points of interest, also without fixed guarantees or a clear profit model.

Terra 2.0 price drop dramatically since launch:

A similar regulated cryptocurrency called “Basis Cash” developed by Terraform Inc. has collapsed in the same way.

At the same time, the price of the classic LUNA has fallen by more than 90% after the release.

Terra’s newly launched LUNA has also dropped about 70% in price since the launch of distribution.

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Currently, the digital currency LUNA is trading at an average price of $6.8 after starting to trade in an initial price range of $17 to $18.

The bottom line is that until now it is not known how the old LUNA will affect the new and whether they will adopt the same mechanism or the old method, or are there improvements and developments on the network that will fortify and protect the value of stable digital currencies in the event that they are planned to be launched in the future.

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