LUNA and UST Collapse: Investigation Opened and Deepening!

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South Korea has been warned of the collapse in the cryptocurrency market that led to the unbundling of Terra (LUNA). According to a local news site, Luna’s collapse results in similar instances. South Korean gaming firms using blockchain and crypto are nervous right now.

The current situation in South Korea after the LUNA collapse

According to the analysis provided by CoinMarketCap, the LUNA collapse affected institutions as well as individual investors. According to research, more than two gaming companies lost some of their value as a result of the collapse of LUNA and UST. The expectation of a massive exit of consumers and potential investors from the blockchain ecosystem of the gaming industry is now a major concern.

Terra, the blockchain firm behind Terra (LUNA), reported on Twitter on May 13 that an autopsy has been carried out on the incident and the findings will be announced as soon as they are ready. Expressing that they are aware of the difficult situation and asking investors to be careful, they asked them to be aware of their safety. They continued with another tweet that served as a warning and reminder to investors to trust only information transmitted by their official Twitter accounts throughout the entire process.

How accurate is South Korea’s crypto adoption?

South Korean President Yoon Suk-yeol, elected in March, is expected to accelerate crypto adoption in the country. In his manifesto, he promised to enact legislation to facilitate the trading and operation of all types of cryptocurrencies in the country. Expecting a major change in the country’s crypto policy, Yoon Suk-yeol announced his plans to support ICOs that have been restricted since 2017. Yoon Suk-yeol, a South Korean prosecutor and politician, is the 13th elected President of South Korea.

South Korea is a country where cryptocurrencies are common, with around 10% of the population being active users. Next year could be even more important for the country’s crypto sector, following reports that the government plans to pass necessary legislation in the form of a Digital Asset Base Act (DABA) and a Central Bank Digital Currency (CDBC).