Binance, the world’s largest cryptocurrency exchange, is seeking to stop trading Terra (Luna) and TerraUSD (UST) tokens on Terraform Labs on its platform after one of the biggest crashes in the industry.
The stock market suspended Luna and UST indefinitely for most of the spot pairs on Thursday night after the tokens lost almost 100% of their value in a few days. In addition, this freezes Luna’s trading in all cross-margins and isolated margin pairs.
IN movefollowing the stock exchange, which withdraws support for trading Luna token futures contracts earlier Thursday, comes when Terraform Labs increases circulating deliveries of Luna tokens to over 6.5 trillionup from 386 million three days ago (according to Terrascope, a tool that tracks Terra’s statistics) in an attempt to pass its sister token, a supposedly stable coin, to regain its 1 to 1 attachment to the dollar.
Update: Shortly after the publication of this story, Terraform Labs said he stopped the Terra blockchain and worked to “come up with a plan to restore it.” This is the second time the Terra blockchain has been frozen today. Earlier Thursday, Terraform Labs briefly shut down the network to prevent any hacks.
TerraUSD, the so-called algorithmic stable coin, aims to be a substitute for the dollar, intertwining with the Luna, which has no fixed value. The plan is that if the value of TerraUSD falls below $ 1, it could be “burned” and exchanged for Luna for $ 1 and vice versa.
But when TerraUSD fell below $ 1 earlier this week, the reason for which has not yet been confirmed, this algorithmic plan was put to the test and crashed.
The loss of faith in the crypto community and aggressive panic sales caused Luna’s price to fall to $ 0.0000011, from about $ 80 earlier this week. The value of UST was 3 cents at the time of publication.
Terraform Labs is trying to find ways – including reportedly trying to raise money – to resolve the situation, but so far has been unlucky.