Few of the world’s largest crypto exchange platform have suspended or begun to delist tokens affiliated with the imploding Terra blockchain, including those which were shareholders in the turbulent system.
Terra tokens are being delisted by major cryptocurrency exchanges
As the Terra financial collapse worsens, a few of the world’s biggest cryptocurrency exchanges have begun to delist the UST stablecoin and its associated Luna token, invoking a need to protect consumers from financial threats.
On Thursday, Binance, the world’s top crypto exchange platform by transaction volume, stopped trading in Luna and Terra. Soon after, the OKX exchange, which is one of the top ten by volume, followed suit. However, Luna and UST tokens proceeded to be listed and traded on the FTX exchange as well as other smaller exchanges.
Binance CEO Changpeng Zhao stated in a tweet that decision had been made ever since Terra blockchain stopped its network for the 2nd time. The network outage meant that no deposits or withdrawals could be made to or from any exchange platform, he said in a tweet.
In response to the crisis, the Terra blockchain operators have repeatedly paused and then un-paused the system, adding to the frustration of the project’s investors. Whenever a network is not accessing new blocks, no operations with resources held on that blockchain are possible.
The frenzy clamor to cash out from stakeholders has also caught some exchange platforms by surprise. Crypto.com issued a statement on Friday outlining an instance wherein customers who tried to trade Luna were given the wrong price.
Other stablecoins appear to have avoided Terra’s tragedy: Tether, the most valuable stablecoin by market valuation, has gained back its dollar peg after falling as weak as 95 cents on Thursday.
Prior to the weekend’s events, UST was one of the world’s largest stablecoins in terms of market capitalization. Luna, which is used to maintain UST’s 1-1 peg to the dollar, was also one of the most valuable cryptocurrencies. The unraveling of UST and Luna’s collapse sent tremors through crypto, as Terra, once a crypto favorite, began growing so large and was linked to the rest of the world of cryptocurrencies.
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