Binance warned it will delist LUNA if the coin crashes below 0.0005 USDT which means the user will no longer be able to trade LUNA for USDT on the exchange so let’s read more today in our latest cryptocurrency news.
Binance warned it will delist LUNA and the tether trading pairs if the price of LUNA falls below 0.005 USDT. After Binance made the announcement, Terra shut down the network and left the supply of 34 billion coins in limbo, and turned its back on it two hours later. LUNA is the native token of the Terra ecosystem and in the past day, the price crashed as low as $0.01302 down by 99% for the second day in a row and as of the time of writing, it was trading at $0.02074.
By the time Binance made the announcement, it already adjusted the tick size or minimum transaction size for a few LUNA trading pairs including the EUR or the British pound, Australian dollars, and eTH. Binance had to do this a few times over the past week as LUNA’s price crashed below the minimum transaction size and made it impossible for people to cash out. The exchange lists more than 600 cryptocurrencies saw $6 billion worth of LUNA traders in the past day and accounted for about 8% of the trades in the past day.
The LUNA token was in freefall while terraform labs considers proposals for ways to save it as well its native stablecoin TerraUSD from collapsing further. LUNA is meant to help UST as an algorithmic stablecoin and maintain the dollar peg with a mint and burn mechansim so the investors can swap UST for $1 worth of LUNA and vice versa. This means that over the past week, UST lost its dollar peg and investors were able to cash in UST no matter the value of $1 worth of LUNA. At one point in the past week, UST dropped as low as $0.29 which means investors are making this arbitrage trade tume a profit of 70% by selling their LUNA.
That created tremendous sell pressure for LUNA and in fact, Binance stopped LUNA withdrawals because of the high volume of pending withdrawal transactions.
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