Exchanges begin to turn away from LUNA

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2022-05-14 14:37:19

The popular cryptocurrency exchange said on Thursday that it will remove the trading pair if the price falls below 0.005 USDT, which has already happened.

Cryptocurrency exchange Binance has announced that it will delist Terra (LUNA) futures contracts denominated in Tether (USDT) after a price drop of more than 99%.

In a blog post yesterday, Binance said it will take “precautionary measures” around its LUNA/USDT perpetual contracts. Binance intends to delist the pair if the price falls below 0.005 USDT. The announcement follows Binance’s move to change the leverage and margin levels for LUNA-bound contracts on Wednesday, with maximum leverage set at eight times for positions below 50,000.

On the morning of May 13, Binance continued to announce the removal of spot trading pairs for LUNA .

Specifically, Binance stopped:

  • Cross Margin Pairs: LUNA/BUSD, LUNA/USDT, LUNA/BTC, UST/USDT
  • Isolated Margin Pairs:LUNA/BUSD, LUNA/USDT, LUNA/BTC, LUNA/ETH, LUNA/UST, BTC/UST, ETH/UST, UST/USDT, UST/BUSD
  • Spot pairs: LUNA/BTC, LUNA/BIDR, LUNA/AUD, LUNA/BNB, LUNA/ETH, LUNA/USDT, LUNA/GBP, LUNA/BRL, LUNA/TRY, LUNA/EUR, BTC/UST, LUNA /UST, ETH/UST, BNB/UST, UST/USDT
  • BUSD-Margined Perpetual Contract : LUNA / BUSD

Earlier on Thursday, Binance said it would launch LUNA futures defined by Binance USD (BUSD). The new contract appears to be an alternative investment vehicle should they clear LUNA/USDT. According to Binance, the exchange was experiencing “slowness and congestion” due to overcrowding. Binance was forced to put a large number of withdrawals from the Terra network on the pending list.

Exchanges refuse to trade LUNA after 100% drop in price

Meanwhile, Binance competitor Coinbase has also stopped accepting LUNA and UST. Specifically, many people tried to transfer these tokens from Wormhole to Coinbase wallets, but the assets then disappeared and were not tradable. Wormhole is a token bridge that allows users to send and receive cryptocurrencies between Ethereum, Solana, BNB Chain, Polygon, Avalanche, Oasis, and Terra.

Coinbase stopped supporting Wormhole LUNA and UST, and evaded when users asked for help. Currently, on Twitter and Reddit, many users have spoken out, asking Coinbase to fix this situation.

The LUNA price has dropped more than 99% in the last 24 hours, reaching $0.008 currently after the mass sell-off. The volatility has affected many tokens in the crypto market, with Bitcoin (BTC) falling below $27,000 to a 16-month low and Ether (ETH) below $2,000 for the first time since July 2021.

In the context of strong market volatility, many other exchanges have spoken to reassure users on social networking sites. Celsius Network CEO Alex Mashinsky told his Twitter followers on Wednesday that the platform “has not experienced any significant losses and all funds are safe”. Similarly, the CEO of Coinbase, Brian Armstrong, told users of the exchange that the company is “in no way in danger of bankruptcy.”

After the massive drop in LUNA and stablecoin UST losing the peg, Do Kwon spoke up after a tense period of silence. He shared in a Twitter post that the reason for LUNA’s demise was that when UST lost its peg, users switched to burn UST and mint LUNA. This resulted in a rapidly increasing supply of LUNA and being sold off the market creating a severe bearish event that could not be reversed.

In the coming time, Do Kwon promises to work with his team to come up with solutions to overcome the situation and provide new solutions to stabilize the price of UST.

#Exchanges #turn #LUNA

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