Binance delists LUNA and UST. The international cryptocurrency exchange following the catastrophic drop of the algorithmic stablecoin has stopped trading pairs with the Terra ecosystem’s cryptocurrencies.
Binance announced the action on May 13, suspending spot trading for the LUNA/BUSD and UST/BUSD trading pairs. It’s unclear when the withdrawals will resume, as the crypto exchange just indicated that it would wait for the Terra network difficulties to be resolved before proceeding.
Following one of the most major black swan occurrences to impact the industry since the creation of Bitcoin (BTC) in 2009, it is the latest step by the world’s largest cryptocurrency exchange by trading volume.
Is it over for LUNA?
Despite promises to save the failing Terra coin and UST, Binance Futures delisted coin-margined LUNA perpetual futures on Thursday. Following the meltdown of the Terra blockchain currency, validators were compelled to take the network offline on May 12 in order to prevent any governance assaults.
On May 10, Terra’s coin and its algorithmic stablecoin Terra USD crashed dramatically as UST lost its $1 peg. The system was meant to maintain its peg to the US dollar automatically. Still, it failed, causing the UST to devalue and LUNA tokens to be created unprecedentedly.
The fall was catastrophic, with the value of LUNA plummeting by 95 percent in a matter of days. Do Kwon, the founder of Terra, has issued a short-term strategy to help the ecosystem recover. The plan called for burning $1.4 billion UST and staking 240 million LUNA tokens in order to keep the UST $1 peg from depreciating.
According to rumors, Crypto.com, a Singapore-based exchange with over 50 million users, halted the coin trade yesterday. Because of the coin’s recent significant market volatility, the decision might constitute a follow-up. The historic downturn has caused investors panic and considerable loss, as many have lost their whole life savings.
Now it seems like almost all the exchanges are letting LUNA go. Will it resurrect? Only time will tell.