Did Terra’s Legal Team Resign Over the Moral Dilemma of Defending Kwon?

Terra’s legal team

Terra’s legal team just resigned leaving Do Kwon high and dry amid disastrous market conditions

The LUNA crypto crash led the Terra ecosystem to face unspeakable volatility, and loss of reputation, and most importantly, it caused major financial losses for its investors. The LUNA crypto crash was linked to TerraUSD’s ‘de-pegging’ from the US dollar. One of the many reasons why it lost its peg from the dollar is justified by the fact that TerraUSD is an algorithmic stablecoin of the Terra ecosystem. Shifts in the market movements of LUNA have got investors reeling with fear about their future investments. In fact, some investors are even contemplating cashing out their profits, or are regretting continuing to retain their money in the crypto market, and not cashing it out when they had the time and chance to do it. Amid these difficult times, Terra’s legal team resigned, and this news caused another significant blow to Terra’s reputation and status. It is guessed that Terra’s legal team is hesitant to support Do Kwon due to his reckless ideas and moves.

According to reports, Chief corporate counsel Lawrence Florio, general counsel Marc Goldich, and regulatory counsel Noah Axler resigned shortly after UST crashed, which caused the entire ecosystem of Terra to become unstable. The real reason why the lawyers have left is still unknown and the firm’s executives have not officially revealed any statement on this. But this significant change in the employment status of the Terraform Labs’ legal team, amid extreme volatile conditions, has caused the value of Terra to decline further. It is quite obvious because if the executives themselves lose faith in the future potential of the crypto, then it also would not be possible for the logical for the investors to rely on the crypto.

 

Do Kwon’s Reckless Decision to Create Another Blockchain

Do Kwon initiated several proposals in the days after the collapse of UST and LUNA. But the one that is most controversial is its attempt to revive the Terra blockchain. It involves abandoning its algorithmic stablecoin status and launching a new cryptocurrency to replace its old governance token LUNA. It basically reflects his original plan to distribute the 1,000,000,000 new LUNA tokens after their significant losses due to the fall of UST and LUNA.

But this plan was rejected by a majority of the voters. As per reports, on the platform where the Terra Founder had just posted his revival plan, 1.90% of the preliminary voters rejected the proposal. But the voting forum is still active on the matter, and decisions might change in the forthcoming months. Several other crypto industry leaders agreed that this might not be the perfect time for the Terra Founder to launch another blockchain or cryptocurrency because the entire crypto market is plummeting. This might also be one of the many reasons why Terra’s legal team resigned. Nevertheless, crypto fanatics are still waiting for a reason and looking forward to more logical initiatives from the founder.

 

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