Investing.com – The fall in the , which also dragged down the Luna cryptocurrency, has sparked the interest of authorities in South Korea.
A further meeting with representatives of crypto exchanges Bithump, Coinone, Korbit and Gopax is due to take place next week. At this meeting, the ruling party’s Virtual Assets Committee will develop with those present a draft containing non-binding guidelines on the conditions under which a listing and de-listing of tokens should take place.
The country is thus following Japan’s self-regulatory approach, as reported by Bloomberg.
As an industry association, the Korea Blockchain Association has already developed, on behalf of its 19 members, a comprehensive draft containing guidelines for operation. It can be expected that this will serve as the basic framework for the discussions that will take place next week with the government.
2.0 has a trust issue
After the blockchain crashed, Terra founder Do Kwon forced a reboot that couldn’t have been more bumpy.
While many complaints have been filed against it and TerraForm Lab in South Korea, the new LUNA token has also fallen by up to 70% in the meantime.
No one seems to believe in a success story like Terra’s anymore.
The Terra community is still working to clear up incidents related to the collapse. It seems that capital amounting to more than a billion dollars has disappeared, when it was intended to save the stablecoin TerraUSD. The question on everyone’s mind is where did the money go?
Do Kwon does not want to speak on this subject, nor on the future of the new blockchain. The founder, usually very vocal on Twitter (NYSE:), put his account in private mode.
Terra (LUNA) technical analysis
La Luna, which initially fell from $11.98 to $5.99, failed to initiate a sustained recovery.
After a brief test of the 78.6 percent Fibo retracement of $7.2769, it tested its recent low. From there, losses accelerated to the 123.6 percent Fibo expansion level of $4.5787.
This support, however, did not hold up to the downside pressure for long and trading is already taking place below the 138.2 percent Fibo extension of $3.7032.
Currently, everything seems to indicate that the downward movement will extend. The next support is found at $2.9957, at the level of the 150 percent Fibo extension, which is reinforced by the psychological threshold of $3.00.
By Marco Oehrl