- Binance restores Luna and Terra trading pairs after delisting them
- The collapse of Terra and Luna has cost investors a loss of millions
- Terra blockchain had been halted by its validators after the announcement
The Binance platform, which is currently the world’s largest crypto exchange by volume will be restoring Terra and Luna spot trading.
The resumption is expected to take place on 13 May 2022. Binance announces that Terra and Luna deposits and withdrawals will be opening at the same time.
This comes after the validators to the Terra blockchain decided to disconnect to on-chain swaps and close all IBC channels.
Terra Luna Dropped Off
A few hours ago the platform announced that it had gotten rid of Terra and Luna due to its rapid decline in prices.
The trading pairs that were eliminated include LUNA/BTC, LUNA/BIDR, LUNA/AUD, LUNA/BNB, LUNA/BRL, LUNA/ETH, LUNA/USDT, LUNA/GBP, LUNA/TRY, and LUNA/EUR.
The crypto exchange platform had also eliminated the UST stablecoin hence removing the Terra pairs including BTC/UST, LUNA/UST, ETH/UST, BNB/UST, and UST/USDT. Binance also chopped off the LUNA/BUSD margined perpetual contracts.
Terra Halted its Blockchain
After Luna’s price decreased to approximately 100%, Binance stated that it will delist it. 2 hours later after the announcement Terra went ahead and closed its network before reactivating it again.
This was done so that the Terra blockchain validators could find ways to reinvent it.
According to CoinMarketCap, the stablecoin was trading at $ 0.02074 at the time of press. Several other cryptocurrencies are being hit by the market volatility as the biggest crypto, Bitcoin falls to $27,000 while Ether falls to $2,000.
After the Terra project launch in April of 2019, the project was seemingly attractive and its future was promising. However, on 7th May 2022, Terra began losing its parity with the dollar. And four days later it reached $0.29 lows.
This is not the first time the value of Terra has been seen deteriorating. At the end of 2020, the stablecoin was launched and after one month its value stood at $0.85.
Wrong Timing for Terra Luna Delisting
Many traders and investors prefer using stablecoins as a store of value when the prices hit rock bottom. This is because stablecoins tend to withstand high market volatility. However, Terra and Luna’s downfall gets one wondering if stablecoins are safe assets anymore.
Terra’s protocol seigniorage defends the value of parity by burning the Luna tokens to maintain their circulation.
However, despite the defensive mechanism, Luna has been crushing and it had lost 100% as the circulating supply accumulated to approximately 6.5 trillion tokens.
Terra barely persevere as it dropped to $0.194, recording a 69.74% drop according to CoinMarketCap.
Terra, Luna’s Downfall Was Foreseen
Popular individuals in the crypto space questioned the sustainability of the seigniorage mechanism in case of a situation such as what has recently happened.
Adam Back was among the people who showed concern two months back, through a tweet directed to Do Kwon founder of UST.
Conversations on Twitter concerning the UST collapse depict how traders and investors have lost millions if not thousands of dollars.
Binance focuses on improving its efficiency
Recently, in May 2022, Binance became the most licensed and regulated exchange platform in UAE and has plans to continue backing cryptocurrency innovations.
Binance has had major innovations and in its efforts to clean up its ecosystem, in April 2022, it launched a new Portfolio Margin Program. The program is designed to enhance risk management and make maximum use of the capital efficiency of several products that are used for trading.
