Terra’s Luna has witnessed a massive decline in price in the last 24hours, this has prompted crypto exchanges in South Korea including Bithumb and Korbit to issue warnings to their users about trading the altcoin.
Following the crypto’s recent price drop, South Korea’s major exchanges have issued warnings about trading Luna (LUNA). Luna’s price has dropped 87 percent in the last 24 hours and is down 96 percent from its all-time high of $119 in April.
Coinone, one of South Korea’s “big four” crypto exchanges, has halted trading of Luna because of 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 decide whether to cease or continue trade once these designated investment warnings have expired.
The situation, on the other hand, reveals the extent of fear among Korean crypto investors over Luna’s present drop. According to Coinranking data, Bithumb is the ninth-largest exchange for Luna trade volume in the last 24 hours.
Luna’s decline occurs as TerraUSD (UST), the ecosystem’s main algorithmic stablecoin, loses its peg. The UST currency, which is supposed to be tied to the US dollar, is currently trading at $0.47, up from $0.27 earlier in the day.
Luna has drawn global attention for the past year as one of the most influential cryptocurrencies here and abroad, with its market capitalization becoming the world’s seventh-largest in March. Terra’s anchor protocol ecosystem was behind Luna’s rapid rise, as it has offered a high yield to investors.
The recent de-pegging of UST, however, has tainted Luna’s global fame. Many critics also raise issues over the credibility of UST as a stablecoin, further boosting Luna’s sharp decline.