Updates on the situation of LUNA and UST on May 12

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2022-05-16 02:43:29

The collapse of the Terra ecosystem has lasted for the past few days and has not shown any signs of cooling down. Since the time UST lost the $1 closing milestone on May 8, many consequences have adversely affected the LUNA coin in particular and the entire cryptocurrency market in general.

UST price still can’t recover on 12/05/2022

UST is still sliding below the $1 mark and is trading at $0.51 and still shows no signs of recovering back to the $1 peg.

Besides, the price of Terra’s native token LUNA plummeted, losing more than 99.9% from the peak of $119, fluctuating around the $0.1 mark.

Binance Announces Deactivation of LUNA . Perpetual Contract Trading Pairs

LUNA suddenly became a junk coin when it lost 99.9% of its value

In the midst of panic and continuous market sell-off, the world’s largest exchange Binance announced that the Binance Futures platform will conduct automatic settlement of LUNA/Coin perpetual contract trading pairs and contract delisting. . Users are required to close any open positions before the delisting time to avoid automatic payouts.

Binance Futures will update the new leverage and margin levels of the LUNA/USDT Perpetual Contract shortly after. The change will take effect soon to avoid investor objections. Maximum leverage and initial margin have been adjusted tiered. Existing positions opened prior to the update will not be affected.

Gemini Refutes BTC Lending Rumors to Subvert LUNA

A rumor circulated widely on May 11 that the Gemini exchange had loaned two companies Blackrock and Citadel 100,000 BTC (worth about $3 billion). The two companies are said to have exchanged 25,000 BTC for TerraUSD (UST) – a stablecoin that has rapidly lost its peg since the weekend – and dumped both for a profit. The dumping of the asset is said to have caused a “massive slippage and triggered a liquidation that forced the sale of both assets,” triggering a sell-off of Terra’s cryptocurrency LUNA.

However, Cardano CEO Charles Hoskinson denied it with a statement on Twitter:

“We became aware of a recent story claiming that Gemini lent 100k BTC to large institutions, which allegedly led to the LUNA sell-off. Gemini insists we don’t do that.”

The rumor spread more and more soon after, and the CEO deleted the tweet immediately.

While Anchor withdrawals are widely believed to have had an adverse effect on the UST, there is no evidence that the above companies were involved in such events.

Various recovery plans for TerraUSD are said to be underway. Today, Terraform Labs CEO Do Kwon announced changes to the economics of the project, including a proposal that could increase LUNA’s minting capacity and adjustments to collateral.

#Updates #situation #LUNA #UST

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