- Changpeng Zhao tweeted his disappointment at the way the Terra team handled things.
- CZ said the team had little communication with the exchange.
- Terra’s validators paused the blockchain for the second time after LUNA hit a penny.
- UST is far from a $1 peg
- Binance and other exchanges have delisted LUNA spot and perpetual contracts.
Changpeng Zhao, CEO of the world’s largest cryptocurrency exchange Binance, spoke about the platform’s decision to stop trading support for Terra’s LUNA and UST tokens. Zhao’s thread revealed that Binance has canceled the contract to protect users and investors.
Some users, unaware of the large amount of newly issued LUNA outside the exchange, started buying LUNA again without understanding that the price would drop further as soon as deposits were accepted. We have stopped trading because of this significant risk.
CZ also expressed disappointment at the Terra team’s inability to manage the situation and maintain communication with the exchange. According to Zhao, Binance has received little or no feedback from the project since the network pause.
The CEO ended the thread by stating that the platform will continue to evaluate developments and make decisions as circumstances change.
Other exchanges, such as Bitmex, have also canceled perpetual contracts for their tokens and have stopped trading as well.
Binance delists LUNA when the coin drops below the penny.
Terra’s long main crisis ultimately led to a meteorite crash in the LUNA coin price. The token, which boasted a price of $80 last weekend, now trades for 1/100 of a penny per data on CoinGecko and TradingView.
LUNA’s circulating supply went to the moon after UST holders attempted to withdraw cash from their unpinned stablecoins. Terra’s algorithm allows stablecoin holders to exchange 1 UST for 1 dollar through a mechanism built to maintain the token’s dollar peg.
However, this process also issued LUNA coins and flooded the market with more tokens, which further drove the LUNA price down. Press Time The circulating supply is currently closed. 6.5 trillion. The Terra team paused the network twice on Thursday and Friday to allow validators to find a solution.
Block production has since resumed, but on-chain swap support remains offline.