The LUNA crash has become the main topic of discussion among cryptocurrency investors. For those who do not know about the event, the stablecoin token UST and LUNA digital currency native to the Terra Chain crashed 99.9% in a matter of a few hours after its peg was broken. The incident has the cryptocurrency investors worrying about other stablecoin projects going down the same road.
It is worth noting that in the past, algorithmic stablecoins have lost their market dominance several times to the point of no return. However, the latest crypto market analysis reveals that the investors in South Korea are accumulating LUNA tokens in massive quantities in the hopes that the token will generate big returns if it is reinstated.
When it comes to cryptocurrencies or any other asset class, their perception and confidence among investors can play an important role in determining its market value. LUNA retained the rank among the top 10 cryptocurrencies in the world by market cap for a considerable time. During the first quarter, LUNA managed to keep printing green candles and reached a new ATH of $119.
During a time when the rest of the cryptocurrency market was in a state of correction, LUNA maintained a positive return. However, the currency was unable to prevent its 99.9% price crash in less than a few hours. With the incredibly low prices, the investors in South Korea are buying LUNA in large quantities with the hope of making big returns in case the token image is reinstated in the market.
LUNA Community Rejects the Plan of Do Kwon to Reboot the Terra Chain
Where South Korean investors are showing an increasing interest in accumulating more LUNA tokens many community members do not wish to see their investment make a comeback.
The hashtag burn LUNA has been trending for a while on social media sites like Twitter. The netizens have rejected the proposal of Terraform Labs Founder and CEO Do Kwon for rebooting the Terra Chain and distributing new tokens among existing investors.
Furthermore, the financial regulatory authorities of South Korea, like the Financial Services Commission, FSC, have issued warnings and reservations about the increasing accumulation of the LUNA tokens among its citizens. To curb the mass adoption, the cryptocurrency exchanges in South Korea like Coinone, Upbit, and Bithumb are planning to delist LUNA.