South Korean Bitcoin and altcoin trading platforms are no longer taking risks after the Terra incident. Exchanges operating in South Korea issued various warnings for altcoins in their announcements today. Here are the details…
Altcoin warning from South Korean stock market
After TerraUSD (UST), the algorithmic stablecoin of the Terra ecosystem, lost the US dollar peg (de-pegging) The value of the crypto market has dropped drastically. Thus, many lessons were learned that wreaked havoc on the entire cryptocurrency market. After the event, cryptocurrency players are looking for possible scenarios to prevent a repeat of the Terra event. According to a blog post by South Korea’s leading cryptocurrency exchange Upbit, investors of the trading platform have been warned to be vigilant and cautious after the Tron algorithmic stablecoin USDD lost its peg against the dollar. The statement included the following statements:
There is currently a concern that the USDD’s stable is not doing well. As a result, the probability of WAVES and TRON (TRX) price fluctuations associated with each of the above stablecoins may increase, so please be careful when investing in WAVES and TRON (TRX).
Projects affected by the “de-peg” event
Meanwhile, USDD’s de-peg has been up in the last 24 hours TRX, which fell more than 15 percent, caused price fluctuations at the time of writing. Over the past 24 hours, the USDD has slumped to $0.974, losing its peg against the dollar. The event also caused TRX to drop from $0.079 to $0.058. Similarly, the decline of Tron ecosystem tokens TRX and USD also reduced the total value (TVL) locked in various decentralized finance (DeFi) protocols on the Tron Network.
Minutes after USDD lost its stable, TVL on various protocols hosted on the Tron network fell from $5.73 billion to $4.68 billion in the last 24 hours. The development continued to spread panic in the cryptocurrency community. Thus, it led to widespread investor capitulation. The Tron Foundation team leaves nothing to chance as they make important moves to prevent the Terra incident from happening to their project. The team used funds from the Decentralized Autonomous Organization (DAO) reserve to protect investors from losses.
2.5 billion dollars used from Tron DAO reserve
as Cryptokoin.com As we also reported, a total of $2.5 billion from Tron DAO reserve has been injected into the market so far to keep USDD pegged to the dollar. At the time of writing, the stablecoin is trading around $0.98. It represents a 0.3 percent drop in the last 24 hours. Meanwhile, Korean stock markets band together to prevent a repeat of the Terra incident. According to a YNA report, leading Korean exchanges, including Bithumb, Upbit, Korbit, Coinone, and Gopax, are considering developing strict measures that will determine the criteria cryptocurrencies will pass before being listed.
