South Korea-based SK Square, an investment arm of conglomerate SK Group, on Wednesday said it will delay the launch of its crypto token due to volatility and FUD in the crypto market.
In fact, SK Square initially planned to release its white paper in the second quarter and launch the SK Coin, a tentative name, in the third quarter.
SK Square Postpones Crypto Token’s White Paper and Launch
SK Square has decided to delay the issuance of SK Coin amid weak market conditions as a result of the Terra-LUNA crash and liquidity crisis, reported South Korea’s Aju Business Daily on June 22.
A spokesperson for SK Square said:
“Preparations are complete, but the market isn’t very good at the moment. The timing has not been confirmed for the issuance of tokens. We will introduce it after addition supplmentation.”
Earlier in March, SK Square’s Vice Chairman Park Jung-ho announced plans to issue a crypto token, the first among the nation’s top conglomerates. Besides, SK Square and SK Telecom have invested billions into blockchain and metaverse projects.
SK Square established a blockchain working group responsible for the cryptocurrency business and planned to issue the cryptocurrency SK Coin.
However, the recent collapse of Terra, subsequent decline in Bitcoin and Ethereum prices, and lack of positive sentiment made the company think otherwise. The company will plan to speed up the issuance process again as market conditions improve.
South Korea’s Crypto Oversight Stiffens After Terra Crash
South Korean government has increased crypto oversight and regulations in the country after the Terra crash. Moreover, a crypto oversight committee has been formed to set coin-listing criteria, monitor unfair trade practices, and oversee investor protection measures.
South Korea has started several probes on Terraform Labs, its founder Do Kwon, crypto exchanges, and other accused people. Several crypto-related bills are pending in the National Assembly seeking to further tighten crypto regulation in South Korea.
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