Both these coins together lost over $400 billion in market cap, while LUNA lost slightly over $40 billion. Ethereum showed a similar reaction, bordering a price of $1,748.30 at its lowest. Bitcoin touched a low of $26,350.49 during the crash. The delisting of LUNA did fuel the already plummeting token price, and this effect was parallel across the entire crypto market. The trading volume for FTX hovered around $445 million while that of Gate.io reached a level of $84 million in the 24 hours after the crash. FTX and Gate.io- a China-centric exchange, still have the tokens available for trade on their platforms. As a result, Deposits and Withdrawals have been suspended from the App and ”Īmid the crisis, a few small-scale exchanges did not choose to delist the token. They explained the reason in a blog post saying “LUNA blockchain is currently down based on the validators decision. Delisting and Relisting by Some ExchangesĪs of 13th May, had delisted LUNA from its exchange. Bitcoin, for example, touched a 10 month low of $26,350.49. This effect was propagated to other cryptocurrencies as well, leading to overall crypto market bleeding. In a matter of a few days, Terra managed to wipe out almost $40 Billion of investors’ wealth. However, its credibility as an investment asset raises skepticism. As of today, however, eToro has relisted LUNA on the platform for traders to buy and sell. Existing client positions remain unaffected,”. Announcing the delisting, eToro said, “ We have taken the decision to disable $LUNA on the eToro platform due to market conditions. Other major exchanges, such as eToro delisted LUNA on the same day as Binance. Due to these significant risks, we suspended trading,”. Luna All-time Price Chart via CoinMarketCapĮxplaining the situation, the CEO of Binance said “Some of our users, unaware of the large amounts of newly minted LUNA outside the exchange, started to buy LUNA again, without understanding that as soon as deposits are allowed, the price will likely crash even more. All this while, the token did manage to make a few jumps, some spanning 5x, and this volatility was an incentive for new traders to make some money. While today, the price is way lesser than a fraction of a cent. This was highly unfortunate as LUNA touched its all-time high just last month, at 119 dollars. As a result, the market supply of LUNA rose from 350 million to a massive 6.9 trillion. A large amount of UST was liquidated on Binance and one another exchange leading to the surge in liquidity of the asset.īeing an algorithmic stable coin, the liquidity was extended to LUNA as well. UST, the Terra stable coin created to work in correlation with the LUNA token, witnessed a mishap. The Terra crash was due to the dysfunctionality in the architecture of the Terra network. Their validators have suspended their entire network, resulting in no deposits or withdrawals possible to or from any exchange” Reason for Terra Crash He expressed, “An exponential amount of new LUNA were minted due to flaws in the design of the Terra protocol. Changpeng Zhao, the CEO of Binance presented a rational explanation as to why the exchange has halted trading. The biggest exchange by volume, Binance, discontinued the trading of the LUNA and Terra tokens on the 12th of this month- when the price was down to less than a cent. Protecting traders from high-risk trading was the most presented explanation by exchanges for the delistings. In the event of a crisis, many exchanges halted the trading of Terra LUNA soon after it took a dip. Join Our Telegram channel to stay up to date on breaking news coverage
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