With LUNA and UST getting crushed in the market, two South Korean exchanges issued warnings to users dealing with the two tokens.
After a dramatic 90% market crash, LUNA, trading below $5, is now deemed a “cautionary item” by the popular South Korean cryptocurrency exchange UpBit.after the embattled crypto project – Terra’s flagship stablecoin UST – lost its peg with the US Dollar.a warning to its investors while dealing with LUNA. In a bid to protect clients, the exchange designated the cryptocurrency as an “Investment Warning Item.
André Nakano de Melo, the CEO of TITANDAO, highlighted the current problem with UST and LUNA, which is that traders want to get both the tokens out of the exchanges “so they can exploit the arbitrage opportunity by redeeming UST for LUNA.” He also went on to add that “exchanges need to stop the outflows as they might not have enough tokens for all traders that want to withdraw.”“The cold storage of tokens on exchanges does not imply they actually have all tokens for redemption.
The collateral damage on LUNA for UST’s significant deviation was epic. According to Melo, LUNA is following a similar death spiral as TITAN. He said, “UST was trading at close to $0.2 today, so confidence will be hard to regain. I do believe LUNA will eventually go even further down as IRON stablecoin was backed by $0.75 USDC while UST is only backed by LUNA. There is not too big to fail in crypto.”
At times of market stress such as this, it remains to be seen if LUNA manages to prove its viability.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New South Korean president touts 'audacious plan' for North Korea if it drops nuclear programNew South Korean president touts 'audacious plan' for North Korea if it drops nuclear arms program
Read more »
South Carolina man dies of heart attack while burying girlfriend he killed, authorities sayA South Carolina man accused of strangling his girlfriend died of a heart attack while burying her in their yard in a twist of what some might call poetic justice.
Read more »
PennDOT opens final public comment period on I-83 South Bridge tolling projectThe public has 30 days to offer comment on the environmental assessment of this proposed billion-dollar bridge project that includes improvements to interchanges at both ends.
Read more »
ATM stolen in apparent smash-and-grab in South SeattleSeattle police are investigating after an ATM and money from a cash register were stolen during an apparent smash-and-grab Tuesday morning in South Seattle. FOX13
Read more »
Yoon Suk Yeol sworn in as South Korea's new PresidentSouth Korea's new President Yoon Suk Yeol promised an 'audacious plan' to strengthen North Korea's economy in exchange for denuclearization in his inauguration speech.
Read more »
South Carolina teen trapped in 40-foot well rescued by firefighters after clinging to pipesA 14-year-old in South Carolina was rescued by firefighters after being trapped inside a 40-foot well.
Read more »