Binance and 7 other exchanges remove LUNA and Terra USD from their platform


Key facts:
  • While some exchanges are removing LUNA and TERRA USD, others remain silent.

  • BitMEX has changed the funds held by its users in such cryptocurrencies into Bitcoin.

Update: This article has been updated in response to a new statement from Binance.


Several cryptocurrency exchanges have already announced the delisting of the US dollar coins LUNA and TERRA, both of which are from the Terra project. A decision that more platforms could join due to the fact that its network has been crippled twice by their auditors.

Some exchanges I’ve already removed Crypto.comAnd OKXAnd PrimeXBTHopi WazirXAnd I got it and BitMEX. Meanwhile, it is still being marketed in other regions, such as FTX, Gate.io, and KuCoin, where no denying data has been released yet.

For example, Binance delisted it but re-listed it. They explained to the company that they did so because Terra blockchain auditors decided to resume block production, disrupt on-chain exchanges and shut down IBC channels. Along the same lines, LetsBit . exchange communication LUNA and UST withdrawals will be restored when Terra network validators restart network activity.

Before resuming service on Binance, Changpeng Zhao, Founder and CEO of the stock exchange, he was one of the first to Transfer The platform will not accept any additional trading of LUNA and TERRA USD. According to the series of tweets posted on their official account, they made the decision because the way the project handled the whole situation was not satisfactory to them.

Via Twitter, he said, “A massive number of new LUNAs have been minted due to flaws in the Terra protocol design. Their entire network has been suspended by validators, resulting in no potential deposits or withdrawals to or from any exchange.”

Advertising

Zhao said that some of his users, unaware of the situation, started buying LUNA. This is without understanding that once deposits are allowed, he said, the price is likely to drop further. Because of these risks, it is estimated that they feel that suspending the trading of such cryptocurrencies is the best way to protect their users at this time.

Changpeng Zhao, CEO of Binance.
Changpeng Zhao (alias: CZ), CEO of Binance, explained that he has suspended the LUNA and TERRA USD service to protect its users. source: cz_binance / Twitter.

on social networks, Some merchants commented that they bought LUNA and UST after the steep price drop. They made such a move believing that their value would rise over time, without ever imagining that their network would be crippled. Others did them out of ignorance, because they knew nothing about this situation, according to Changpeng Zhao’s explanations.

The big question is what will happen to those people who still have money from those cryptocurrencies in wallets or exchange offices. The truth is that it will depend on each exchange being resolved. for example, BitMEX has proven that funds in LUNA or UST that were used by their users will be converted to Bitcoin today (BTC).

Although it is worth clarifying that even before the closure of its network, such cryptocurrencies became almost zero, with which those who had money there lost almost everything. According to CoinMarketCap, LUNA is trading at $0.00002 and $0.1, the latter usually pegged to the dollar at 1:1. CriptoNoticias reported stories of some affected by this situation.

disappointing ending

The CEO of Binance said that they usually refrain from commenting on projects other than their own, but decided to break the rule in the Terra case.. Although he made it clear that the exchange was meant to be neutral with its users and industry peers, this time around he gave his opinion on the matter.

“I am very disappointed in the way Team TERRA handled the Ground Reservoir/Luna incident (or not). We have asked your team to restore the grille, burn additional LUNA minted, and retrieve the UST pin. So far, we have not received any Positive feedback or many feedback at all.”

As it was explained Terra is different from what happened in Axie Infinitywhere the team took charge, had a plan, proactively communicated with them, and allowed them to help.

Among those who have spoken on this topic is Daniel Vogel, founder and CEO of the Bitso exchange. The entrepreneur commented to CriptoNoticias that on his platform, they think a lot about the risks of cryptocurrencies, so they did not have the floor treasuries. Precisely because they didn’t feel completely comfortable with the way it maintained its dollar peg.

Leave a Comment