Binance has halted LUNA and UST trading due to Terra blockchain concerns.
Following the stopping of the Terra blockchain, Binance stopped LUNA/BUSD and UST/BUSD on its spot trading platform. Following the huge drop of the algorithmic stablecoin, global cryptocurrency exchange Binance has halted trading pairings with the Terra ecosystem’s cryptocurrencies, LUNA and TerraUSD (UST), on its platform. Binance announced the action on May 13, suspending spot trading for the LUNA/BUSD and UST/BUSD trading pairs. It’s unclear when LUNA and UST withdrawals will resume, as the crypto exchange just indicated that it will wait for the Terra network difficulties to be resolved. It is the latest action by the world’s largest cryptocurrency exchange in terms of trading volume in the aftermath of one of the most important black swan occurrences to impact the market since its creation of BTC in 2009. Despite promises to save the failing LUNA and UST, Binance Futures delisted coin-margined LUNA perpetual futures on Thursday. Terra blockchain validators were compelled to take the network offline on May 12 in order to prevent potential governance assaults after the network’s LUNA currency crashed.
Binance founder Changpeng ‘CZ’ Zhao addressed the incident on Twitter, with the exchange being wary of making decisions that might have repercussions on markets and cryptocurrency values. CZ said that the action was forced by Terra Validators’ decision to take the network offline, resulting in no deposits or withdrawals to or from any exchange. The Binance CEO feels that suspending trade on its platform will protect naïve investors who have continued to buy LUNA with the aim of profiting when the LUNA network resumes operation.
On May 10, Terra’s LUNA and its algorithmic stablecoin Terra USD crashed dramatically as UST lost its $1 peg. The disaster was catastrophic, with the value of LUNA falling by 95 per cent in space in a week. The plan called for the burning of $1.4 billion UST and the staking of 240 million LUNA tokens in order to halt the depreciation of the UST $1 peg.
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