Stablecoin market shaken by Terra/Luna crisis… Beware of Upbit and Korbit Investments

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The recently plummeted Luna coin price is displayed in the customer center of a cryptocurrency exchange.[사진=연합뉴스]

It seems that the impact of the Terra-Luna crisis is spreading throughout the stablecoin market. Major exchanges such as Upbit, the largest coin exchange in Korea, are calling on investors to be cautious about investing in stablecoins, including Tender.

On the 18th, Upbit introduced cautions for investment in digital assets related to stablecoins. The exchange said, “As revealed in the recent rapid price fluctuations of Luna, sudden fluctuations in the value of collateral related to stablecoins and virtual assets that have a function linked to stablecoins occur or if the algorithm does not work properly, rapid price fluctuations may occur. can,” he said.

The related virtual assets, such as stablecoins, to which Upbit has advised investment caution include △Near Protocol △DAI △Reserve △Maker △Steam △Steam Dollar △Wave △Tether △Tron △TrueUSD △Pax Dollar △Hive △Hive Dollar. 13 papers.

Korbit also called for caution about investing in stablecoins. Stablecoin related stocks listed on Korbit include △Near Protocol △Dai, Maker △Luna △USD Coin △Tron.

“A virtual asset that aims to maintain the same price as fiat currency by setting fiat currency or virtual assets as collateral or by linking separate virtual assets through an algorithm to adjust supply and price,” said Korbit. However, if the underlying algorithm does not operate as intended, rapid market price fluctuations may occur, and all virtual assets linked to the algorithm may be affected, so please be careful.”

The company added, “If there is a sudden price change, measures such as suspension of deposits and withdrawals and re-examination of transaction support may be taken.”

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