UST Depeg Following

May 20,2022
South Korean Government and Ruling Party to Hold Emergency Meeting on LUNA on May 24 KingData News: On May 20, the ruling party in South Korea decided to hold an emergency meeting on May 24 to discuss measures to protect investors as the LUNA and UST crashes are having a growing impact on the country, according to a report by Korea Economic Daily. The ruling party plans to convene representatives of the country's five largest crypto trading platforms and let them develop enhanced investor protection measures on their own before the adoption of the Basic Law on Digital Assets. At this meeting, the Financial Services Commission will report on the preparation of the Digital Asset Framework Act and the Financial Intelligence Agency will report on the results of the inspection of virtual asset trading platforms. In addition, the ministries report to the ruling party on the Token Market Risk Management Plan (Financial Supervisory Authority), consumer protection and market monopoly measures for virtual asset trading platforms (Fair Trade Commission) and the investigation of crimes related to cryptocurrencies (National Police Agency). The country's five largest trading platforms are expected to propose measures to protect the industry's autonomous investors in order to prevent a second LUNA event.
This indicator provides follow-up on the depg of Terra's stablecoin UST on May 8th. Terra's stablecoin UST briefly lost its peg to the U.S. dollar on May 8th, dipping as low as $0.985. The depeg event came after a series of multi-million dollar UST selloffs as one account traded about $85 million worth of UST for USDC on Curve Finance, while another user reportedly sold $108 million worth on Binance. UST posted a slight recovery shortly after Terraform Labs CEO Do Kwon posted a tweet calling out the stablecoin's critics.
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