Following the major crash of the algorithmic stablecoin, popular global cryptocurrency exchange Binance has announced that it is suspending trading pairs with Terra ecosystem cryptocurrencies, LUNA and TerraUSD (UST), on its platform.
WHEN WILL LUNA AND UST WITHDRAWALS RESUME ON BINANCE?
Binance presented little information regarding when the withdrawals for LUNA and UST will resume, as the crypto exchange only said that it will wait for the issues with the Terra network to be solved.
About Terra LUNA and UST Crash
For those who are unaware, ON May 10, Terra’s LUNA and its algorithmic stablecoin Terra USD crashed dramatically after UST lost its $1 peg. The system was designed to maintain its peg to the US dollar automatically, with failure resulting in a systematic devaluation of UST while LUNA tokens began to be minted at an unprecedented rate.
As a result of the devastating crash, the value of the cryptocurrency LUNA witnessed a drastic drop, sinking by 95% in the space within the matter of days. Later on, Do Kwon, the founder of Terra, released a short-term roadmap in an attempt to revitalise the ecosystem. The proposal called for the burning of $1.4 billion UST and the staking of 240 million LUNA tokens in order to halt the depreciation of the UST $1 peg.
Terraform Labs Respond
Terraform Labs, in response, has said it has halted the Terra blockchain and is working to “come up with a plan to reconstitute it.”
The Major Coinbase Outage
Besides Binance, leading crypto exchange Coinbase has also reportedly suffered a major outage amid crypto chaos, particularly with the cryptocurrency Terra LUNA, further fueling fears among the investors.
Responding To The Situation Coinbase said: “We are aware that some customers are having issues trading and accessing accounts on Coinbase and Coinbase Pro. Your funds are safe, and we are actively working on the issue. We’ll provide an update here soon,”.
Over $275 billion was wiped off the global crypto market cap in less than 24 hours on Thursday, and Bitcoin fell to nearly $27,000, a level last seen in December 2020.
Ethereum, the world’s second-largest cryptocurrency, has also joined the cryptocurrency crash, losing 20% of its value, adding to the anxiety and fears of the investors who bought it during the COVID years.