Korbit Also Decides to Delist Luna Amid 'Crash Crisis'... Trading Support Ends from Next Month 3rd

[Asia Economy Reporter Lee Jung-yoon] Domestic cryptocurrency exchange Korbit decided on the 25th to delist Luna, which recently experienced a crash.

On the day, Korbit announced, "Trading support for Luna will end at 2 p.m. on the 3rd of next month," adding, "Luna deposits will only be accepted until 2 p.m. on the 31st of this month, and withdrawals after the end of trading support will be possible until 2 p.m. on August 31." Korbit had been discussing the delisting of Luna considering that existing customers might not be able to freely dispose of their assets.

On the 10th, Korbit designated Luna as a trading caution item and on the 13th, through a 'Terra Stablecoin Depegging Report' published by its Research Center, provided investors with information about the incident.

Furthermore, Korbit decided to use all trading fees generated after the designation of Luna as a trading caution item to protect investors. From 12 p.m. on the 10th to 6 p.m. the previous day, Luna’s trading volume was approximately 14.8 billion KRW, with fee revenue around 10 million KRW. Fee revenue is expected to increase until the scheduled end of trading support on the 3rd of next month. Korbit plans to use these funds as resources to compensate investors affected by Luna and cryptocurrencies in general, demonstrating the exchange’s responsible stance.

Oh Se-jin, CEO of Korbit, stated, "As investor anxiety is growing due to the Luna price crash, this decision was made to quickly resolve the cause of the anxiety and fulfill our social responsibility," adding, "We will contribute to creating a more desirable virtual asset investment culture by using fee revenue to protect investors."

Earlier, the price of TerraUSD (UST), a stablecoin designed to be pegged to 1 USD, plummeted, causing the price of its sister coin Luna to fall sharply, resulting in a major crash. Unlike other stablecoins backed by safe assets such as cash or government bonds, Terra applied an algorithm that maintained value through Luna. However, due to concerns about economic recession, the prices of UST and Luna dropped, triggering the crash.

In response, Gopax was the first to decide to delist Luna. From 3 p.m. on the 16th, Gopax ended trading and deposits for Luna and TerraKRT. TerraKRT refers to a stablecoin pegged to the Korean won.

Upbit ended trading support for Luna listed on the BTC market, where cryptocurrency trading is possible with Bitcoin, from 12 p.m. on the 20th. Bithumb will end trading support from 3 p.m. on the 27th.

Thus, among the five major domestic exchanges operating KRW markets, four have decided to delist Luna. Coinone, which currently allows Luna trading, plans to decide on delisting soon. Coinone designated Luna as a trading caution item on the 11th and will decide on delisting after two weeks of discussion.

There have been claims that exchanges have been collecting fees without delisting Luna despite the crash. At a ruling and opposition party meeting held at the National Assembly the previous day on 'Enactment of the Digital Asset Basic Act and Emergency Inspection of Coin Market Investor Protection Measures,' Kang Min-kook, a member of the People Power Party, criticized Korbit and Coinone, questioning whether their response was delayed.