Korean exchanges are not supporting Terra 2.0 while other top world exchanges face no fear in supporting terra’s new ecosystem.
The exchanges have disassociated themselves from Terra’s rebirth following the ongoing investigation by Korean authorities to determine the actual cause of LUNA and UST collapse.
With TerraForm Labs edging closer to launching a new chain in a bid to make investors whole, Korbit, South Korea’s first cryptocurrency exchange, has disclosed that it will be terminating Terra (LUNA) transactions on its platform later this month.
Korbit noted in a press release today that although Terra 2.0 is expected to launch tomorrow, it has decided to end LUNA deposit, trading, and withdrawal support, following an emergency meeting convened earlier this week.
According to the exchange’s decision, LUNA deposits will end on May 31, 2022, and trading of the cryptocurrency will be terminated by June 3, 2022, while withdrawal of the digital currency from the platform is slated to end on August 31, 2022.
While the exchange noted that there is a possibility that it may change the schedule, it urged its users to ensure that they comply with the directive as soon as possible to avoid incurring losses.
Reason for the Decision
Korbit noted two reasons why it chose to terminate support for Terra ecosystem token LUNA. According to Korea’s first exchange, it usually discontinues support for digital currencies, when the crypto asset in question puts the trading platform and its customers at risk.
The exchange added that it will stop supporting a particular cryptocurrency if it fails to comply with government regulations.
Terra Under Investigation in Korea
In recent times, Terra has been under heavy backlash for not moving early enough to curtail the losses investors incurred. At the moment, Terra as well as its founder Do Kwon are facing tax charges in Korea.
Terra is also undergoing an investigation in the country, as authorities seek to unravel the main reason for the firm’s collapse.
Regulators’ involvement in Terra’s situation has prompted many exchanges in South Korea to disassociate themselves from the rebirth of the Terra network.
Wu Blockchain tweeted about the development earlier.
According to heraldcorp, Do Kwon contacted five South Korean exchanges to relist when LUNA 2.0 goes live. But as LUNA is under investigation after its failure, several other exchanges in South Korea except Upbit are keeping their distance. https://t.co/O7IL8lH1zh
— Wu Blockchain (@WuBlockchain) May 25, 2022
As reported by TheCryptoBasic Terra’s Do Kwon Refuses Claims That He Lobbied Korean Exchanges To Accept Terra 2.0.
On the other hand Upbit, the largest exchange in South Korea said it supports the LUNA2 airdrop to holders who own LUNC in Upbit. But supporting airdrops does not mean supporting LUNA2 transactions.
Other Exchanges Outside Korea Support Terra 2.0
Meanwhile, Terra’s much-anticipated new chain is expected to launch tomorrow, a move that will give birth to new LUNA tokens that will ultimately replace the old ones dubbed Luna Classic (LUNC).
With LUNC holders expecting the launch of Terra 2.0, global cryptocurrency exchanges have declared their intention to support the upcoming Terra 2.0 in order to help investors recover their losses.
Popular cryptocurrency exchange FTX disclosed earlier today that it will be supporting the upcoming LUNA airdrop.
— FTX (@FTX_Official) May 26, 2022
Following its decision to support the $LUNA airdrop, FTX said it will be suspending LUNC markets, including trading, deposit, and withdrawal on the platform later today around 12pm (UTC). The move is a result of Terra’s plan to take a snapshot of investors’ LUNC balance around 16:00 UTC today.
Bitfinex also declared that it would support the rebirth of the Terra network when it eventually goes live.
Bitfinex is supporting the launch of #LUNA 2.0 ‘Rebirth Terra Network' migration on May 27th
More details to follow in the coming hours https://t.co/CrYgWvnNal
— Bitfinex (@bitfinex) May 25, 2022
Similarly, Gate.io, a top cryptocurrency exchange, also announced that it would be joining other top cryptocurrency trading platforms to support the upcoming Terra 2.0.
— Do Kwon 🌕 (@stablekwon) May 26, 2022
Bitget will be supporting the launch of LUNA 2.0 on the 27th of May.
— Bitget (@bitgetglobal) May 25, 2022
Kucoin also confirmed Terra 2.0 and airdrop support.
— KUCOIN (@kucoincom) May 26, 2022
The list of exchanges eager to support Terra 2.0 has continued to increase. Yesterday, TheCryptoBasic reported that Binance, Huobi, HitBTC, BYBIT, and Bitrue, among others, also declared support for Terra’s rebirth.