Changpeng Zhao, popularly known as CZ, is the founder and Chief Executive Officer of Binance. Speaking from his official Twitter handle, he revealed what prompted the decision to pull LUNA and UST from Binance.

Key elements driving Binance’s decision to launch LUNA and UST . to suspend justify

TerraUSD (also called UST) and LUNA are the two most popular stablecoins in the crypto community, with UST being dependent on LUNA. Typically, stablecoins are a way to get around high volatility, which is a common element of the crypto market, by maintaining relative price stability through the use of collateral (fiat or cryptocurrency) or algorithms. Binance is shutting down all forms of LUNA and UST trading on its platform after a massive decline in the crypto world, which deped LUNA.

A few questions were asked about LUNA’s sudden drop in value and why Binance has removed it from its platform. Changpeng Zhao, or CZ as he is popularly known, used his Twitter handle to give reasons for making the decision. The decision was made in accordance with Binance’s policy of user protection in case of excessive volatility.

He explained that there was a glitch in Terra’s protocols and the decision was made to prevent Binance users from purchasing the newly created LUNA, which most likely could have resulted in a crash in accounts.

He expressed his anger and disappointment when he waived Binance’s neutrality position and reprimanded the Terra team for their dereliction of duty and failure to respond to Binance. Citing a previous case, he praised their prompt response and partnership with Binance, ending with a promise to keep a close eye on things and keep users informed of any development.

What future does Terra have after the nightmare’s decline and closure?

In the wake of the crashing of UST and LUNA, Terra blockchain announced in the early hours of Friday, May 13, 2022 that it was shutting down its operations. The tweet further revealed that the shutdown was necessary for the validators to arrive with a reconstitution plan and while it is currently uncertain what the plan is, there is a promise of updates. Terra LUNA previously hit a record high of $119.18 in April, but stood at just $0.00002934 at the time of publication.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years. 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 @sharmasunil8114 and contact him at sunil (at) coingape.com

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This post CZ Reveals Why It Has Stopped LUNA And UST Trading On Binance

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