After the collapses of Terra (LUNA) and TerraUSD (UST), some South Korean cryptocurrency exchanges are telling their users not to trade. LUNA and UST have lost 93% and 56% respectively in the last 24 hours.
South Korean exchanges stop trading LUNA
Luna is trading on Coinone, one of South Korea’s “big four” crypto exchanges, due to the sudden price drop He saw that the proceedings were stopped. Additionally, both Korbit and Bithumb have issued “designated investment alerts” against LUNA, citing the same kinds of concerns. These notices do not mean that Luna will be suspended for Bithumb and Korbit. When an exchange issues a 72-hour investment alert, it tells you whether to continue trading.
However, the warnings by exchanges give an idea of how worried Korean crypto investors are about Luna’s recent collapse. According to Coinranking, Bithumb has become the ninth largest exchange for Luna trading volume in the past 24 hours. TerraUSD (UST) is losing value in a bearish spiral as price loses its stability. The UST, which is expected to be pegged to the US dollar, is now at $0.41 after recovering from as low as $0.27 earlier in the day.
Expected statement from Terra founder Do Kwon
Terraform Labs CEO Do Kwon, helping stablecoin TerraUSD (UST) return to the dollar rate announced a seriously anticipated roadmap for He acknowledged in a tweet thread that he posted during the day that the past 72 hours have been extremely difficult for the Terra community and he hopes it can help him survive.
Kwon, the functioning of stablecoin mechanics, the amount of capital trying to exit the IHR He says it’s resulted in too many Luna sales because of that. That’s why the LUNA price is down more than 85% today. Kwon on Twitter:
First of all, the only way forward will be to absorb the supply of stablecoins that want to exit before the UST starts repeating itself. There is no way to get around this.
To begin, approves a community proposal that will quadruple the amount of Luna minted per day. This will enable more UST holders to withdraw cash. In Kwon’s words:
Naturally, this comes at a high cost to UST and LUNA owners, but we will continue to explore various options to bring more external capital into the ecosystem and reduce the supply load on UST.
Terra founder says going forward, the stablecoin will be redesigned to be collateralized. We will be presenting the future statements in the news of Kriptokoin.com…