LUNA and UST Trading Temporarily Halted on Binance to Protect Users

Binance stops trading UST and LUNA

In the early afternoon, Binance CEOChangpeng Zhao, tweeted to provide an update on the dramatic situation relating to the ecosystem of Terra (LUNA). In particular, we learn that UST/BUSD and LUNA/BUSD trading pairs have been suspended.

Changpeng Zhao mentions a first problem: a exponential number of LUNA tokens created (minted) as a result of depeg (loss of benchmark value) of the UST, which automatically led to a fall in its value on the market.

This is also the reason why the 2 cryptocurrencies drag each other into a bottomless pit: the LUNA will continue to lose its value. until the UST recovers its value of 1 dollar.

In short, over a week, the number of LUNA tokens in circulation increased by +49,293%.

Number of LUNAs in circulation from May 7 to today

However, as Changpeng Zhao points out, not all users are necessarily aware that the LUNA is currently in an endless spiral. Also, in order to limit the damage, trading of these 2 assets has been suspended on the largest cryptocurrency platform in the world.

But that was short-lived: a few hours later, an announcement was made in order to warn that the trading of these pairs will be restored at 4:30 p.m.. A rather significant contradiction between the declaration of the CEO and that of the platform therefore, especially insofar as no additional precision has been provided.

πŸ‘‰ Discover our tutorial on the Binance platform

Terra’s strategy strongly criticized by CZ

The CEO of Binance, through this tweet, did not fail to let people know what he thought of the strategy (or precisely its absence) from the Terra team.

A priori, Binance would have contacted the developers of the blockchain in order to offer them solutions to reinstate the peg of the dollar on the UST:

β€œI am very disappointed with the way this UST/LUNA incident was handled (or not) by the Terra team. We had their team restore the network, burn the excess LUNAs, and recover the UST peg. So far, we have had no positive response, or no response at all. Β»

He then made the parallel with Axie Infinity, whose Ronin sidechain was hacked for $620 million lately. At the time, CZ had praised the communication and responsibility of the teams in charge of the project, who had suffered one of the most important hacks in the history of cryptocurrencies.

β€œThe contrast is stark with Axie Infinity, where the team took responsibility, had a plan and proactively communicated with us. And we helped. Β»

On their side, Terra teams give very little newsnot to mention Do Kwonthe founder of Terra, has been off the radar since May 11.

πŸ‘‰ To read also: Blockchain suspended again, Do Kwon threatened, LUNA at $0.001… Update on Terra this morning

Data source: Messari

Newsletter 🍞

Get a crypto news recap every Sunday πŸ‘Œ And that’s it.

What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.

Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.

About the Author : Maximilien Prue

twitter-soothsayerdata

Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
All articles by Maximilien PruΓ©.

Leave a Comment