Binance, the world’s largest cryptocurrency exchange by volume, has stopped trading Terraform Labs’ Terra (Luna) and TerraUSD (UST) tokens in most spot pairs, with Luna additionally stopping trading on all cross-margin and isolated-margin pairs. I did. The biggest collapse in cryptocurrency history.
that much moveFollowing the exchange withdrawing support for trading futures contracts for Luna tokens earlier on Thursday, Terraform Labs announced a circulating supply of Luna tokens. More than 6.5 trillionIt is an attempt to reclaim the 1:1 peg against the dollar by pushing its sister token, a stablecoin estimated to have grown from 386 million users three days ago (according to Terrascope, a tool that tracks Terra stats).
update: Shortly after this story, Terraform Labs said It brought down the Terra blockchain and is working to “plan to rebuild it”. The Terra blockchain was frozen for the second time today. Earlier on Thursday, Terraform Labs took the network to a halt to prevent hacking.
TerraUSD, a so-called algorithmic stablecoin, aims to replace the dollar by tying it with Luna, which has no fixed value. The plan is that if the value of TerraUSD drops below $1, it can be “burned” and exchanged for $1 worth of Luna and vice versa.
However, when TerraUSD fell below $1 earlier this week, the reason is still unknown.t Algorithm scheme was tested and crashed.
asDue to the belief of the crypto community and aggressive panic sales, the Luna price plunged from around $80 to $0.0000011 earlier this week. The UST was worth 3 cents at the time of issuance.
Terraform Labs has been busy figuring out ways to remedy the situation, including attempts to raise funds, but so far no luck.