The Fall of Do Kwon: A new development emerges as LUNA holders slide into turmoil

South Korea’s Ministry of Foreign Affairs most dangerous Wednesday (5 October) That Terraform Labs Pte. Ltd. CEO Kwon Do-Hyung, also known as Do Kwon, will have his passport revoked within four weeks if he does not return it.

Well, Do Kwon had one Arrest warrant For his sake, the addition of his name has been widely reported red list by the International Police.

Claims and counterclaims

Do Kwon has used his social media accounts to reveal reports from South Korean news outlets and other news sources since the start of the event.

he is chirp On September 17, just days after news of his arrest warrant was leaked, he insisted he had never escaped. He also stated that he and his team will cooperate with any government agency that communicates with them.

The co-founder of Terra has reportedly blocked his assets, and this has been reported several times. Make Kwon in it tweet He also claimed that no funds of his own have been frozen.

On September 28, his team sent a statement to the Wall Street Journal, saying that they believe the case has become highly politicized and that the behavior of Korean prosecutors has exposed injustice and failure to defend basic rights granted under Korean law.

Do Kwon and his team have also made it clear that whatever explanations the Korean financial authorities may have given recently, they still consider Luna not a security.

Price action is not looking good

The previous 24 hours of LUNA price data showed that the asset had lost its value. LUNA opened at $2,588 on September 5 and fell to close at $2,548, losing 0.37% from its opening price.

At the time of writing, the price is down more than 1% during the trading period. It appears that $2.138 was still providing strong support and $3.071 was still providing resistance.

Source: TradingView

From the looks of the price chart, the initial news of Do Kwon’s arrest had little impact on the asset’s value. However, trading volume appears to have decreased significantly after the release of the INTERPOL Red List, and the latest information on passport revocation also appears to have triggered negative price action.

Did LUNC also take a hit?

While the pattern does not immediately reveal whether or not the development of Do Kwon’s news affected LUNC’s trading, it also appears to be trading lower.

However, as can be seen from the volume indicator, trading volume has decreased in the past two days. Additionally, it revealed that LUNC had fallen more than 2% the day before.

Starting today at $0.000307, ​​it traded as high as $0.000307 before settling at $0.000300 at the close on September 5th. Its support at $0.000263 was tested in the previous weeks, but it appears to be holding. It appears that the resistance is in the $0.000370 area.

Source: TradingView

As the Terra saga continues to unfold, potential investors may want to wait before making any decisions. Thus, it is likely that new investors will not join the ecosystem soon. In addition, if investors are unsure of the ultimate solution to the story, selling pressure may increase and growth may slow.

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