Bitcoin (BTC)Crypto News

Luna’s BTC reserves have vanished as exchanges halt UST withdrawals amid turbulent 24 hours

                                                            Der jüngste Schritt der Cryptowährungsbörse erfolgt, nachdem LFG beschlossen hat, 1,5 Milliarden US-Dollar an BTC und UST zu verleihen, um deren Bindung zu verteidigen.

Binance on Tuesday announced the temporary suspension of LUNA and UST tokens, citing a high volume of pending withdrawal transactions as a result of “network slowness and congestion.”

  • The cryptocurrency exchange also said it would resume withdrawals for the two tokens once it deemed the network stable and reduced the volume of pending withdrawals.
  • In a statement, Terra’s official Twitter account urged users to be mindful when using public infrastructure. it said

“If you are using public infrastructure, please do not send it at this time as we are by nature very busy. Please note our use of public infrastructure. Stay tuned for more updates on today’s events and future plans.”

  • Other prominent platforms like Kraken and CoinList have also stopped paying out. FTX, on the other hand, continues to process UST withdrawals.
  • As previously reported by CryptoPotato, TerraUSD (UST) lost its peg to the dollar over the weekend. The third biggest stablecoin by total issuance fell as low as $0.68 before recovering to $0.91, according to data from CoinMarketCap.
  • In a bid to defend its peg, the Luna Foundation Guard said it will lend $1.5 billion in Bitcoin and UST to third-party platforms planning to support the algorithmic stablecoin’s peg.
  • The address, which previously held over 70,000 BTC, is currently completely used up.

Bitinfocharts

  • Many critics believe the move may have exacerbated a sell-off in the bitcoin market that has propelled it to its lowest price since July 2021.
  • Along with UST, LUNA lost a whopping 50% of its value in the past day alone, plunging to lows not seen since last October amid macrovolatile conditions in the broader cryptocurrency market.
  • Several experts in the crypto sector were not pleased with TFL founder Do Kwon’s move to intertwine the project with Bitcoin, which happens to be at the heart of the digital asset market.
  • The argument behind this is the fact that algorithmic stablecoins, unlike traditional stablecoins, derive their price stability from the use of specialized algorithms and active treasury management. who manage the supply of tokens in circulation.

Source: Crypto News Deutsch

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