Exchanges begin delisting LUNA, Binance explains why
Binance Luna Terra UST

Exchanges start unlocking LUNA, Binance explains why

The world’s largest trading exchange, Binance, has delisted its trading pairs for LUNA Terra.

The exchange announced that it had canceled all pending orders, ceased trading, closed user positions, and automatically settled all LUNA trading pairs.

Binance decided to delist LUNA when its value fell 100% after the UST stablecoin was de-pegged from the dollar.

In line with our policy of protecting our users during excessive volatility, Binance will adjust the tick volume (i.e., the minimum unit price change) of certain spot trading pairs.

Several other exchanges have reached the same conclusion and decided to delist the token, including Bybit, eToro, and Crypto.com.

CZ explains Binance ‘s position

Changpeng Zhao, CEO of the crypto firm, revealed in a series of tweets why the exchange was “suspending LUNA and UST trade.”

1. Ag #Binance we prioritize user protection. We made the decision to suspend LUNA and UST trade. Here’s why.

Thread πŸ‘‡

– CZ πŸ”Ά Binance (@cz_binance) May 13, 2022

According to her statement, some users may not be aware that Terra developers were still hitting new LUNA units outside the exchange. CZ said that allowing deposits to lead to an immediate crash in the price of the asset.

CZ said:

Very disappointed in how Terra staff handled (or did not handle) this UST / LUNA incident. We asked their team to restore the network, burn the extra minced LUNA, and recover the UST peg. So far, we have not received any positive response, or much response at all.

Other exchanges warn against Terra trading

South Korean crypto exchange Korbit told investors to look closely at their investments in LUNA. Another major exchange, Coinone, also temporarily suspended trading the token.

Bithumb has named an investment warning item to warn potential investors who want to get involved.

In addition, a decentralized financial protocol, Venus, announced that it was suspending its trading in the LUNA market because of the risks.

“In view of the continuing risks to the LUNA market and in order to eliminate the possibility of further shortages, the public called for an immediate effect on the LUNA market,” the statement said.

Terra developers working on LUNA bleeding prevention

Terra’s official account announced recommendations to rectify the situation by burning UST, but that may not be enough to cure the network.

The Terra blockchain was officially stopped at block height 7603700.https: //t.co/squ5MZ5VDK

Terra validators have decided to stop the Terra chain to prevent governance attacks after severe attacks $ LUNA inflation and the cost of attacks significantly reduced.

– Terra (UST) 🌍 Powered by LUNA πŸŒ• (@terra_money) May 12, 2022

Terra announced that he was suspending the network “to prevent governance attacks following a heavy $ LUNA inflation.” However, after a patch was released, the network has resumed block production.

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