- All economic activity on the Terra blockchain has ceased
- Exchanges begin to halt trading as the future of Terra assets remains uncertain
Just hours after stopping and restarting the Terra blockchain, validators appear to have thrown in the towel, opting for a second — and this time indefinite — stop late Thursday. Major exchanges soon opted to delist the LUNA token, a move that signals the end of the project in its current form.
Earlier Thursday, the community acted to protect assets from a malicious governance attack, including Bonded Ether, AVAX, ATOM, and SOL locked in the Anchor Protocol, keeping their value. Given the chain stop, the Anchor team asked its users via his official Twitter account to “stay tuned in for future updates”.
Binance and Coinbase have or will soon stop trading on LUNA. The Kraken Exchange has exposed Deposits and Withdrawals.
Binance CEO Changpeng “CZ” Zhao said the decision was partly due to a lack of user understanding of LUNA’s offering expansion.
“Some of our users, unaware of the large amounts of newly minted LUNA off the exchange, started buying LUNA again, without understanding that the price will likely continue to plummet once deposits are allowed. Because of these significant risks, we have suspended trading,” he said a twitter thread.
In a now futile attempt to reestablish UST’s 1:1 peg to the US Dollar, the Terra Protocol is designed to continuously mint LUNA and the current circulating supply has exceeded 6.5 trillion versus an initial supply of 1 billion. This pushed the price drop to well below a thousandth of a cent.
Coinbase had initially announced that they would facilitate further trading by creating a more precise price tick of 0.00000001 for all WLUNA pairs. Coinbase has only ever offered trading in Wrapped-LUNA, an Ethereum token representation of the native Terra asset. But just 11 hours later, so are they chosen for a complete end to WLUNA trading, effective as of 12:00 p.m. ET, citing “recent volatility regarding Terra ecosystem assets.”
Just 7 days ago, the combined market cap of LUNA and UST alone was over $45 billion. Today it’s essentially worthless as stakeholders evaluate various options for what might come next.
The Terra Stopped Again, Exchanges Delist Spot Trading post does not constitute financial advice.
Source: Crypto News Austria