South Korean investors have recently poured into Luna, a stablecoin that lost 99.99 percent of its value the other week when its linked stablecoin TerraUSD fell, believing they had nothing to lose.
South Korean crypto enthusiasts wagered on Luna rising from the ashes
Luna was one of the world’s most popular cryptocurrencies, and its demise, along with TerraUSD, caused havoc throughout the crypto spectrum worldwide, with bitcoin losing almost one-fourth of its value between May 9 and May 12.
Luna, which was worth about $100 in late April, is now trading at a fraction of a penny – so short there had been a rush of purchasing from speculators relying on a miracle recovery, with a few sticking to the belief that it’s simply too big to fail.
On Tuesday, South Korea’s Financial Services Commission saw an unanticipated increase in purchases and cautioned the public to avoid investment in Luna as a response.
According to an FSC source who requested anonymity, the number of persons who invested in the defunct cryptocurrency grew by more than fifty percent in just over two days across South Korea’s biggest exchange platforms, having a high of 280,000 as of May 15.
The time for speculating is coming to an end, as two of South Korea’s major exchanges, Bithumb and Upbit, have declared that they would cease exchange assistance for Luna on May 27 and May 20, correspondingly. Coinone has also banned cryptocurrency deposits in anticipation for a possible delisting on May 25. This lowers the available time for speculation.
The transaction has had no substantial impact on the token’s price. It has ranged from one-hundredth and four-hundredths of a cent throughout the previous week. Yet, authorities are concerned about South Koreans’ proclivity to dabble in unpredictable and risky assets like as stocks and crypto, particularly among younger demographics.
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