[Asia Economy Reporter Lee Jung-yoon] Domestic cryptocurrency exchange Coinone has decided to delist Luna following the crash incident.
On the 25th, Coinone announced that it will terminate trading support for Luna starting from 6 PM on the 1st of next month. However, for investors who fail to withdraw within the period, withdrawals will be supported until 6 PM on the 15th of next month.
Coinone designated Luna as a watch-listed item on the 11th due to excessive circulation caused by instability in the stablecoin algorithm and sudden price fluctuations. Following internal listing policies, a maximum two-week improvement period was granted after the watch-list designation, with continuous monitoring. At the two-week mark, Coinone made a final judgment that the reasons for the watch-list designation had not been resolved and decided to terminate trading support for Luna.
Earlier, the price of TerraUSD (UST), a stablecoin designed to be pegged to 1 dollar, 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, leading to the crash.
Along with Luna, Coinone will also terminate trading support for TerraKRT, Anchor Protocol, and Mirror Protocol. TerraKRT refers to a stablecoin pegged to the Korean won.
There have been claims that exchanges did not delist Luna despite the crash and instead profited from fees. Coinone stated, "The reason for not hastily terminating Luna trading support is to adhere to the exchange’s principle and responsibility that all listing and watch-list designation decisions are made based on internal listing policy processes."
Coinone discloses its listing and delisting review criteria on its website to ensure fairness to projects and minimize investor damage caused by unannounced delistings. Additionally, Coinone is actively considering the development and introduction of an alert system to promptly notify investors of sudden cryptocurrency price fluctuations. It plans to strengthen investor protection measures by discussing voluntary improvement plans jointly participated in by the top five domestic exchanges as soon as possible.
Coinone is also strengthening exchange safety trading regulations, such as imposing a 72-hour restriction on the first cryptocurrency withdrawal after a won deposit and restricting withdrawals and users detected by the abnormal transaction detection system. Furthermore, to foster a safe investment culture, it provides cryptocurrency specifications with project whitepapers translated into Korean and has conducted a 'Safe Trading Campaign' to prevent financial fraud damage.
With this decision, all of the top five domestic exchanges operating won markets have decided to delist Luna.
Gopax was the first among the top five exchanges to decide to delist Luna. It terminated trading and deposits for Luna and TerraKRT starting from 3 PM on the 16th.
Upbit ended trading support for Luna listed on the BTC market, where cryptocurrency trading is possible with Bitcoin, from 12 PM on the 20th, and Bithumb will terminate trading support from 3 PM on the 27th.
Korbit also announced on the same day, "Trading support for Luna will end at 2 PM on the 3rd of next month," adding, "Luna deposits will be accepted only until 2 PM on the 31st of this month, and withdrawals after the end of trading support will be possible until 2 PM on August 31."
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