Maverick Thomas May 15, 2022

Binance cancels LUNA and UST amid the death Spiral of the Terra Ecosystem

Analysis
May 15, 2022

Things are not going any better for the Terra ecosystem. Binance has now decided to remove the trading pairs LUNA and UST from the list.

On May 13, Binance, the world’s largest crypto exchange by volume, announced that some margin and spot trading pairs had been removed.

The exchange added that at 00:40 UTC it will remove the trading pairs and stop trading, close users’ positions, perform automatic settlement and delete all pending orders.

The spot trading pairs that will be removed include LUNA/BTC, LUNA/BIDR, LUNA/AUD, LUNA/BNB, LUNA/ETH, LUNA/USDT, LUNA/GBP, LUNA/BRL, LUNA/TRY and LUNA/EUR.

In addition, trading activities for the UST stablecoin have been discontinued. The following pairs have been removed: BTC/UST, LUNA/UST, ETH/UST and UST/USDT. The company also terminated the LUNA/BUSD indefinite contract, which was associated with a high profit margin.

Update:
🔸Notice of removal of some margin and spot trading pairs at 12:40am UTC, May 13, 2022.
🔸Adjusting of tick size for spot trading pair at 12:40am UTC, May 13, 2022. https://t.co/jijqNqaTdJ

– Binance (@binance) May 13, 2022

Terrible times for Terra LUNA

The move came when LUNA crashed to zero, or $0.00001944, according to CoinGecko. As a result, the token has now officially lost 100% to the platform. The amount in circulation is now 6.5 trillion tokens. Goldbug and crypto critic Peter Schiff Couldn’t Resist Using this Tweet follow up:

“Terra Luna is a perfect example of why you should not always buy the “dip”. Yesterday Luna had fallen by 98%. If you had bought on this dip, with the thought that the collapse is a good opportunity to buy, you would have already lost 99.3% today. And this can happen with any cryptocurrency.”

UST is still in the race, but just barely. The once third largest stablecoin was moving around the mark of 0.168 US dollars at the time of writing. However, according to industry analyst Colin Wu, it was significantly lower on some exchanges:

According to Coinmarketcap, UST has fallen to $0.194, a 24-hour drop of 69.74%. Among them, the price of UST/USD trading pair on FTX is $0.083, and the price of UST/BUSD trading pair on Binance is $0.085.https://t.co/wWv4cPdEOg

– Wu Blockchain (@WuBlockchain) May 13, 2022

A South Korean Publication according to them, the police are investigating a report that an unknown person visited the house of Terraform Labs CEO Kwon Do-hyung. Kwon’s wife has asked the police to provide a person for personal protection emergencies.

The Terra blockchain was stopped on May 13 to give validators the opportunity to ”develop a plan to restore the blockchain”.

The Terra blockchain has officially stopped at block 7607789.

Terra Validators have kept the network to come up with a plan to reconstitute it.

More updates to come.

– Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 13, 2022

Tether loses its dollar connection

The world’s largest stablecoin by market capitalization is also affected by the effects of the Terra collapse. According to CoinGecko, Tether is currently trading just below its peg at $0.998. On May 12, the stablecoin fell to $0.98.

Circle’s USD Coin seems to be the only stablecoin that is holding up well at the moment. USDC briefly traded above its peg for $1.06 on May12 before falling back to the dollar.

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