Binance became the largest cryptocurrency exchange due in part to its high trading volume, and the delisting of LUNA may be a move that may be considered by other prominent trading platforms.
Binance, the world’s largest cryptocurrency trading platform has announced it will be delisting many Terra (LUNA) and TerraUSD (UST) pairs in the wake of the unprecedented meltdown that has rocked the two cryptocurrencies. The move as unveiled by the trading platform, the delisting came into effect today at 00:50 UTC.
The delisting encompasses Cross Margin and Isolated Margin Pairs as well as spot trading involving LUNA/BTC, LUNA/BIDR, LUNA/AUD, LUNA/BNB, LUNA/ETH, LUNA/USDT, LUNA/GBP, LUNA/BRL, LUNA/TRY and LUNA/EUR pairs amongst others. This latest announcement follows an earlier suspension of futures trading involving LUNA as the exchange experienced massive volatility that can be termed one of its kind.
The Terraform Labs is behind the LUNA coin and UST stablecoin respectively and this latest crash is one that has shaken the foundations of algorithmic stablecoins, one of which the latter seeks to be a pioneer. The UST is meant to maintain a 1:1 peg with the United States Dollar through its interrelationship with LUNA.
If the price of UST slips below $1, UST is burned and an equivalent of $1 in LUNA is minted and vice versa. Earlier this week, the UST peg slipped and in a bid to help rebalance the peg ratio, the algorithm underpinning the protocol has permitted excessive minting of LUNA whose total supply now sits at over 6.5 trillion, up from 386 million a few days ago.
In a corresponding move, the price of the coin has slumped by a measure not seen before in the crypto space, as the prices fell from over $77 in the past week to $0.00003365 today. The losses have made no effect on every effort that has been deployed by Terraform Labs and the Luna Foundation Guard (LFG) to place the blockchain and its associated tokens on life support.
Will Other Exchanges Follow Binance in Delisting LUNA?
Binance became the largest cryptocurrency exchange due in part to its high trading volume, and the delisting of LUNA may be a move that may be considered by other prominent trading platforms.
While this is a way to protect investors who may want to continue trading the embattled cryptocurrencies in hopes of recording a revival, it is also a way for the exchange to preserve its reserves as every loss also impacts its bottom line.
Exchanges are often known to trail one another as was visible when more than one delisted XRP coins when the United States Securities and Exchange Commission (SEC) filed a $1.3 billion lawsuit against blockchain payments firm, Ripple Labs Inc for selling the coins that it classified as unregistered securities.
Besides the long list of trading pairs involving the LUNA and UST coins, Binance said its users can still trade other trading pairs involving both tokens that are still listed on its platform.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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