Tuesday, September 27, 2022

Binance Suspends all LUNA and UST Trade on its Platform as Terra Network Tests Zero

The biggest cryptocurrency exchange by trading volume in the world, Binance has announced its closure of all trade in LUNA and UST. The decision comes as a result of the deep fall that the algorithmic coins have witnessed in the past week. However, the blogpost announcement also confirms further, that all withdrawals will remain pending for the time.

LUNA and UST in the mud

The Terra Network, which hosts LUNA and UST, both tokens, saw a huge downturn in the past week. 

LUNA, is closely pegged to UST. Therefore, by a crypto minting method called mint-and-burn, for every LUNA token burnt, a unit of the UST token is achieved and vice versa. 

However, a factor that contributed to the huge crash in the past week is that a massive amount of Luna was minted. And as expected, this caused the UST token to largely lose its value.   

Before the huge fall, UST  was trading at the rate of $1.00, but recent data from CoinMarkeCap, as of the time of writing this report pegs the value of the token at $0.1287, accounting for a total decline at the rate of 98% in the past week.

The development also caused a significant panic to the cryptocurrency industry at large, causing multiple reactions regarding a possible come-back for Terra. Hopefully, Terra truly, will bounce back.

Meanwhile, due to the token’s fall, Binance had earlier announced that it will be suspending all Luna and UST trades. The announcement also included a condition that, should the tokens fall harder, then they’ll no longer be traded at all.

But despite announcing strategies on how to rebuild his falling empire, Do Kwon, Terra Network founder, has seemingly failed. 

At the moment, the Terra Blockchain has finally crashed. And Binance has taken the option to suspend all trades in Luna and UST on its spotlight platform.

All hope is not lost

The globally renowned exchange firm has noted that all withdrawals for UST and LUNA may begin again. But that is of course, only when stability is eventually restored to the slow network.

Meanwhile, the celebrity founder of Binance, CZ has expressed his displeasure on how Terra Foundation handled the situation. Regardless however, Terra may yet come out of the shadows and step into the spotlight once again. 

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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