Major South Korean Exchanges Release LUNA Update Amid UST Debacle
The “big four” in Korea warn investors of LUNA’s fluctuating price
Bithumb and Coinone suspended deposits for now
The update follows a massive crash in the market price of LUNA
Terra’s UST stablecoin remains depegged after a previous recovery
Upbit, the biggest cryptocurrency exchange in South Korea, tagged Terra’s governance token as a cautionary item on Wednesday (May 11, 2022).
The platform reportedly took the decision due to the token’s link with Terra’s algorithmic stablecoin UST and the ongoing price tumble with both protocols.
Upbit has been monitoring the price fluctuations of Luna and UST and the operation of the algorithm. In the situation where the above issues are not resolved, it is possible to cause unexpected damage to investors due to sudden fluctuations in the circulation and market price of Luna.
Other members of South Korea’s crypto “big four” – Bithumb, Coinone, and Korbit, also issued similar warnings to investors. Notably, Bithumb and Coinone have temporarily suspended LUNA deposits pending a full review.
LUNA Crash Continues As UST Remains Depegged From US Dollar
As of press time, Terra’s native token has fallen over 88% in the past 24 hours and slipped below $4 sometime on Wednesday per data from CoinMarketCap. Shortly after the UST stablecoin depegged from the US dollar, the token supposedly took a massive nosedive.
LUNA Daily Price Chart (Source: TradingView)
Despite attempts from Terra and CEO Do Kwon to stabilize UST prices and restore the coin’s peg by deploying the LFG’s massive Bitcoin reserves, the stablecoin remains on the downtrend.
After an initial recovery back to the $0.90 region, UST fell again to new lows. During trading hours on Wednesday, the stablecoin crashed as low as 30 cents on platforms like Binance.