Crypto News

Binance suspends payouts from LUNA and UST

Binance, a crypto exchange, has announced that it has temporarily suspended UST and LUNA stablecoin payouts due to bottleneck processes.

This happens after the stablecoin TerraUSD (UST) was depegged from the US Dollar, causing its price and LUNA’s to drop drastically. LUNA, for example, is down more than 85% today.

In an official announcement released yesterday, Binance said:

“Withdrawals for LUNA and UST tokens on the Terra (LUNA) network were temporarily suspended on 05/10/2022 at 02:20 (UTC) due to a high volume of pending withdrawal transactions. This is caused by network slowness and congestion. Binance will reopen payouts for these tokens once we believe the network is stable and has reduced the volume of pending payouts. We will not notify users in another announcement. We apologize for the inconvenience.”

LFG to restore stability to his UST by using his Bitcoin-Reserves liquidated

Luna Foundation Guard (LFG), Terra’s organization, has already begun looking for ways to bring its ailing UST stablecoin back to its former glory by liquidating its bitcoin reserves to buy more UST.

A prominent cryptanalyst, Colin Wu, explains it this way:

“The Luna Foundation Guard (LFG) bitcoin address just transferred 28,205.5 bitcoins to Binance, and the balance of the address is now 0. The address sent 42,530 bitcoins out earlier today and then transferred 28,205 bitcoins in.”

The Luna Foundation Guard (LFG) bitcoin address just transferred 28,205.5 bitcoins to Binance, and the address’s balance is now 0. The address transferred 42,530 bitcoins out earlier today and then transferred 28,205 bitcoins in. https://t.co/93L3GPcd7S pic.twitter.com/LEoUeuZshe

– woo Blockchain (@WuBlockchain) May 10, 2022

To clarify, the Luna Foundation Guard noted that its most recent update has already started lending its bitcoin reserves to MMs.

LFG says:

“The last clip withdrawn by LFG was ~37,000 BTC. Similar to the last deployment, it was loaned to MMs. Very little of the last clip has been issued but is currently being used to purchase UST. Updates are coming.”

Below is the new LFG $BTC Wallet-Address: https://t.co/9t0NX3VEMI

The last clip withdrawn by the LFG was ~37,000 BTC. Similar to the last deployment, it was loaned to MMs.

Very little of the last clip has been issued but is currently being used to purchase UST.

updates are coming.

— LFG | Luna Foundation Guard (@LFG_org) May 9, 2022

But the big question remains, will Terra be able to regain investors’ confidence to use their UST stablecoin even if they get the situation under control?


Source: Crypto News Deutsch

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