KANALCOIN NEWS – Luck seems to be on Jump Trading’s side. A crypto trading company that managed to make a profit of US $ 1.28 billion from its actions supported the UST Stablecoin before Luna’s bankruptcy.
The bankruptcy of Terra Luna is indeed a highlight for crypto investors. The reason is, this coin has a fairly large market capitalization. It is possible to have a sizable defense and long-term prospects.
What is the relationship between UST and Luna?
UST and Luna are two coins created by Do Kwon under Terraform Labs. Linked in the swap scheme sert algorithm. This means that every one Luna coin can be exchanged for UST with the same nominal value. Vice versa. The aim is to maintain the stability of UST prices using an arbitrage mechanism.
When the supply of Luna on the market decreased, at the same time the amount of UST increased. Allows UST prices to stabilize. Because, if the UST goes up or down then there is an arbitrator who is ready to arbitrate. To take advantage and stabilize the UST price.
Before Luna’s Bankruptcy
Reporting from Yahoo Finance, a court from the US SEC has confirmed that Jump Trading has been supporting UST since a year before Terra Luna’s bankruptcy.
Jump Trading has purchased over 62 million UST. Making the price of this stablecoin return to a stable price of US $ 1 after experiencing a decline in May 2021. As the founder of Terraform Labs, Do Kwon calls this price choice a self-recovery of Terra Luna from the underlying algorithm UST.
Whereas previously, the US SEC stated that Terraform’s third-party trading partner, which is none other than Jump Trading, has taken great advantage of the potential collapse of Terra Luna.
Whereas previously, the US SEC stated that Terraform’s third-party trading partner, which is none other than Jump Trading, has taken great advantage of the potential collapse of Terra Luna.
From this purchase, Jump Trading was finally able to reap a profit of US$1.28 billion. Even the US SEC said that this Jump Trading action violated the law. Making an investor file a class action lawsuit against Jump Trading and the President of the company, Kanav Kariya. For his role in monetizing while supporting Terra tokens.
The US SEC court filing also includes a three-year loan agreement contract. Between Terraform Labs and a subsidiary of Jump Tai Mo Shan Limited which was signed in November 2019.
Under the agreement, Terraform Lab lends 30 million LUNA tokens (LUNC) at an interest rate of 2% per year. And this interest will be paid in LUNA coins as well.
And not long ago, it was known that Do Kwon would be released soon. After giving guarantees equivalent to IDR 6.4 billion to the Montenegro Court.
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Author: Redaksi Media
Cryptocurrency Media