LUNA Is Now Being Delisted By Many Korean Exchanges. What’s Next?
LUNA Is Now Delisted By Korean Exchanges
South Korean crypto markets were impacted by the large LUNA’s price crash today. Upbit, the country’s largest digital asset exchange, issued a statement on the matter, noting that it is actively watching closely and that a decision on whether or not to continue transaction support would be made after more research. However, it is considered certain that the exchange will delist LUNA.
Upbit’s statement said, “Upbit is closely monitoring what is happening at the UST. 1 to 1 commitment to the dollar is still not achieved. This may cause LUNA investors to experience unexpected financial losses.”
Coinone, one of South Korea’s largest crypto exchanges, has halted trading of LUNA because to its recent price drop. Korbit and Bithumb have also issued “designated investment warnings” on the cryptocurrency, citing identical risks.
These warnings do not necessarily imply that LUNA will be suspended for Bithumb and Korbit. The exchanges will determine whether to suspend or continue trade once these designated investment warnings have expired.
LUNA tokens serve as Terra network’s reserve fund, supporting the network’s stablecoin UST. Terra keeps its peg by minting and burning LUNA, to put it another way, the stability of UST is highly dependent on the stability of LUNA.
However, UST has dropped off its peg due to a sharp drop in the price of LUNA. LUNA is now trading at $1.9, down over 93% in the last 24 hours, according to CoinCu data. UST has also dropped to $0.65 after recovering around the $0.9 level. With a market capitalization of about $1.84 billion, the Terra’s token has dropped out of the top ten list of tokens by market capitalization. This is one of the most impressive large-cap token sell-offs we’ve witnessed this year, and it signals many serious trouble and concerns about the collapse of Terra network and its stablecoins system.
Do Kwon, CEO of Terraform Labs, has revealed his plan to help the stablecoin UST recover its dollar peg.
“Before anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before UST can start to repeg. There is no way around it,” he said on Twitter.
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the Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. the Information on this website is provided as general