South Koreans are massively buying up the Terra network’s LUNA cryptocurrency in hopes that a rescue plan can salvage the crypto asset’s value.
LUNA, the native token of the Terra blockchain, showed promise earlier in the year, defying a general cryptocurrency downtrend and even forming a new all-time high just over a month ago at $119, while other major cryptocurrencies were testing casualties.
However, these milestones were short-lived. That’s because it all came crashing down about 10 days ago, with the crypto asset losing 99.99% of its value. LUNA is currently trading at $0.0001334.
With the price of Earth (LUNA) so low, South Korean cryptocurrency speculators have aggressively bought the coin over the past couple of days, calculating that there is little to lose without giving up hope for a return.
On Thursday (19), a Reuters report revealed that the number of LUNA holders in the Asian country increased by more than 50% on major local exchanges in 48 hours.
A hopeful South Korean blogger, for example, who reportedly bought 300,000 LUNA over the weekend, revealed that Do Know will do whatever it takes to “revive” the cryptocurrency.
“Luna was once a top 10 cryptocurrency by market cap. So they’ll do whatever it takes to revive it,” he said.
Following the ecosystem collapse, South Korean developer and Terra co-founder Do Kwon has revealed plans to compensate holders of TerraUSD (UST) – the algorithmic stablecoin whose collapse led to the devaluation of LUNA – by proposing plans to rebuild the Terra network. .
However, Kwon’s latest plan to create a new blockchain from the old one has faced strong resistance from the community. But it already has wide acceptance from validators.
One of the biggest drivers of the LUNA devaluation was the excess LUNA coined in response to the untying of the UST. As a result, instead of a fork of the Earth blockchain, much of “crypto Twitter” and potential investors are calling for a burn of the offer.
After the sudden increase in LUNA purchases, the South Korean Financial Services Commission (FSC) warned against LUNA purchases.
Likewise, regulators remain concerned about the tendency of young South Koreans to buy the asset, despite continued price drops and the lack of a clear plan to revitalize the cryptocurrency and its ecosystem.
Meanwhile, several cryptocurrency exchanges in South Korea are preparing to suspend support for the asset.
Bithumb and Upbit, two of South Korea’s top exchanges, announced that they would suspend commercial support for Luna on May 20 and 27, respectively. Meanwhile, Coinone has banned deposits into the cryptocurrency ahead of a likely delisting on May 25.
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