SEOUL, May 16 (Korea Bizwire) — South Korean game companies with products featuring virtual coins and other blockchain functionalities remain on heightened alert over adverse effects from the recent collapse of the TerraUSD and Luna cryptocurrencies, industry officials said Monday.
Cryptocurrencies operated by South Korean gaming companies for in-game purchases and trading have undergone volatile trading since May 10, when TerraUSD and Luna started showing signs of trouble.
According to CoinMarketCap, a virtual asset info website, C2X, a blockchain platform cryptocurrency created by game company Com2uS Corp., once plunged to the 500 won (US$0.39) range between May 11 and May 12, compared with its price range between 2,100 won and 2,300 won on May 10.
C2X, which previously used TerraUSD as its main platform through a partnership with Terraform Labs, the company behind TerraUSD now depegged from the U.S. dollar, was seen changing hands at around 1,000 won as of Monday morning.
Virtual coins by other companies unrelated to TerraUSD have also gone through tumultuous trading.
Wemix, a cryptocurrency operated by Wemade Co., the developer of the play-to-earn game “MIR4 Global,” once fell 28 percent in value throughout the course of the TerraUSD debacle before bouncing back to the 2,700 won range Monday.
MBX, the virtual coin operated by Netmarble Corp, also plunged more than 80 percent to the 11,000 won level as of Monday, compared with its price at around 64,000 won on May 6.
The value of Klaytn, a blockchain platform developed by internet giant Kakao Corp., also fell to around 500 won as of Monday, compared with its price at around 650 won on May 10.
Companies are keeping close tabs on the latest developments and concerns surrounding the cryptocurrency market-at-large, as a fallout in user and investor confidence could potentially undermine the gaming industry’s blockchain ecosystem, in which many companies have already invested heavily.
“While there are many discussions on the means of stabilizing potential collapses of various gaming cryptocurrencies, there really aren’t clear-cut ways in dealing with them,” one market official told Yonhap News Agency.
“In the end, if the industry emphasizes creating and offering strong content to users, it will be able to sustain itself even when speculation-focused demand vanishes.”