Binance has decided to suspend spot trading for two more trading pairs related to the controversial Terraform assets TerraUSD (UST) and Terra (LUNA) amid increasing declines. In the Announcement Propagated through the official Binance platform, the global cryptocurrency exchange noted that it would further suspend spot trading for the LUNA/BUSD and UST/BUSD trading pairs due to the sharp volatility leading to an immense drop.
Binance had previously suspended margin and spot trading pairs involving UST and LUNA. were involved
This comes about 8 hours after the exchange announced the removal of Margin trading pairs involving Terra (LUNA), including Cross Margin Pairs such as LUNA/BUSD, LUNA/USDT, LUNA/BTC; and the isolated margin pairs LUNA/BUSD, LUNA/USDT, LUNA/BTC, LUNA/ETH and LUNA/UST.
Binance announced that it would “remove and halt trading, close users’ positions, perform an automatic settlement and cancel all pending orders” on the aforementioned margin pairs. The same approach was applied to Terra USD (UST) margin pairs.
In addition, Binance also indicated that it would remove all Terra (LUNA) trading pairs from the spot market, in addition to LUNA/BUSD whose tick size was updated from 0.00001 to 0.0000001 to cushion the asset’s steep decline over the past three days. and protect users.
Terra and Luna crisis escalates
Despite measures promised by founder and CEO Do Kwon and the Terra development team via Twitter, the Terra and Luna crisis intensifies as Terra (LUNA) drops to $0.000038 as at press time.
Terra’s development team had to suspend the Terra blockchain and stop block production on block 7607789 for about two hours on Thursday to prevent hacks in the midst of the crisis and “come up with a plan to reconstruct it”. Block production resumed shortly afterwards.
To stabilize TerraUSD (UST), the development team devised a burning mechanism that in turn saw a large amount of LUNA tokens pump into circulation as UST holders attempted to redeem their coins through LUNA, reducing LUNA’s circulating supply of approximately 346 million five days back to 6.5 trillion tokens at time of printing.
CEO Do Kwon and the Terra team have noted plans to resolve the ongoing crisis, but it remains to be seen whether assets will recover from this unprecedented downturn. UST is currently trading at 0.16 against the dollar.
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously, he was a co-founder of Govt. of India supported startup InThinks and is currently editor-in-chief at Coingape and CEO at SquadX, a fintech startup. He has published over 100 articles on cryptocurrency and blockchain and has assisted a number of ICOs in their success. He co-designed an industry training for blockchain development and has conducted many interviews in the past. Follow him on Twitter @shamasunil8114 and contact him at sunil (at) coingape.com
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