The world’s largest crypto exchange suspended LUNA and UST spot trading shortly after the LUNA coin-perpetual contracts with margin. The company’s CEO took to Twitter to offer his take on the matter.
- CryptoPotato explained the saga that deals with Terra and his two native cryptocurrencies – LUNA and UST – has occurred. The latter having an algorithmic stablecoin is, essentially enabled users to, through arbitrage to profit against LUNA since it started detaching from the USD (which should be pegged 1:1).
- This ultimately led to a massive surge in LUNA’s supply, which has skyrocketed from 350 million on May 9 to over 6.5 trillion.
- Changpeng Zhao outlined these “flaws in the design of the Terra Protocol” in his Twitter thread, addressing the project’s decision that Blockchain stopping twice in the last 24 hours. These actions prompted Binance and other platforms to suspend trading as “it was unable to deposit or withdraw funds to or from an exchange.”
- He believes that some investors started accumulating pieces of LUNA, which had fallen in price from over $80 to well below the 2018 ICO price of $0.8, because they didn’t understand that “once deposits are allowed, the price is likely to continue to plummet.” In fact, it’s dropped even more (another 99.9%) to $0.000035 as of this writing.
- Despite some speculation and suggestions, TerraForm Labs and the LUNA Foundation Guard have yet to release a specific fix to this mess.
- As such, CZ said he was “very disappointed” with how the team had “handled (or not handled)” the situation.
5. I am very disappointed with the way this UST/LUNA incident was handled (or not handled) by the Terra team. We asked their team to restore the network, burn the extra-embossed LUNA, and restore the UST pen. So far we have not received any positive feedback, or any positive feedback at all
— CZ 🔶 Binance (@cz_binance) May 13, 2022
Source: Crypto News Deutsch