Though LUNA has been among the hot digital coins in the cryptocurrency world, the latest crash saw Binance delisting the token from its margin, spot, and futures trading pairs.
The ongoing bear market hit some crypto projects more than others. Nevertheless, no token experienced what LUNA went through. LUNA is Terra ecosystem's native token. The altcoin saw massive plummets, which had Binance, the leading exchange globally, eliminating the asset.
On 12 May, Binance declared suspending LUNA/USD's perpetual contracts after decreasing the official leverage to 8-times. The move emerged after multiple events that saw LUNA's price crashing by over 99%, triggering massive losses for the crypto investors.
Nevertheless, that wasn't enough. LUNA resorted to declines with no stopping signals. Binance followed their announcement within an hour, declaring eliminating isolated and cross margin pairs, LUNA perpetual contracts, and spot trading, avoiding the digital coin.
However, this isn't a spontaneous move. On 11 May, the leading exchange decreased LUNA futures' maximum leverage to 8-times, following massive liquidations caused by overleveraged positions. That means individuals attempting to save long leverage positions on 11 May lost it, with LUNA currently trading below $0.005.
Yesterday, Changpeng Zhao of Binance warned his Twitter followers to respect the marketplace. He added that stablecoins flourish when hot but present a vicious cycle when plunging. The post reflects what UST recorded amid turmoil in the broad market.
Many Out of Business Following LUNA Price Crash
11 May trading sessions saw LUNA price declining to beneath $1 from $40. That triggered cases of individuals attempting suicide (reports from the Reddit community), while others lost house mortgages and savings following the Terra crash.
Anyone that invested $100,000 in Terra saw his portfolio crashing to beneath $500 within a week. Some froze cash in the "secure" UST stablecoin. Though UST should remain steady at $1 regardless of market conditions, the stablecoins plummeted to $0.2 from $1, a worry price move for aggressive and conservative investors.
Meanwhile, Terra's team declared working on a unique measure to resurrect the project. However, the action taken is yet to alter broad market sentiment. For now, the team considered all possible proposals, even modifying the asset's algorithm. Nevertheless, other exchanges might follow actions by Binance, delisting LUNA pairs.
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