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Binance CEO weighs in on LUNA’s tumble below 1 cent and UST’s crash

Changpeng Zhao tweeted his disappointment about how the Terra team handled thingsCZ said the team barely communicated with the exchangeTerra’s validators paused the blockchain for a second time after LUNA crashed to penniesUST is far from its $1 pegBinance and other exchanges have delisted LUNA spot and perpetual contractsChangpeng Zhao, the CEO of the world’s…

  • Changpeng Zhao tweeted his disappointment about how the Terra team handled things
  • CZ said the team barely communicated with the exchange
  • Terra’s validators paused the blockchain for a second time after LUNA crashed to pennies
  • UST is far from its $1 peg
  • Binance and other exchanges have delisted LUNA spot and perpetual contracts

Changpeng Zhao, the CEO of the world’s largest crypto exchange Binance, has spoken about the platform’s decision to halt trading support for Terra’s LUNA and UST tokens. Zhao clarified in his thread that Binance removed the contracts to protect investors and users.

Some of our users, unaware of the large amounts of newly minted LUNA outside the exchange, started to buy LUNA again, without understanding that as soon as deposits are allowed, the price will likely crash further. We have stopped trading due to these serious risks.

CZ expressed disappointment at the Terra team’s inability to manage the situation and keep communication open with the exchange. Zhao claims that Binance received very little feedback from the project after the network pause.

5. The Terra team handled the UST/LUNA issue poorly. Their team was asked to restore the network and burn any extra minted LUNA. They also needed to recover the UST peg. So far, we have not gotten any positive response, or much response at all

— CZ Binance (@cz_binance) May 13, 2022

The CEO ended the thread by saying that the platform will continue to assess developments as they come and take decisions to match changes in the situation.

Other exchanges like Bitmex have also delisted the token’s perpetual contracts and halted trading as well.

Binance Delists LUNA As Coin Falls Below Pennies

Terra’s prolonged week crisis eventually led to a dramatic crash in the price for its LUNA coin. The token which boasted an $80 price the previous weekend now trades at 1/100th of a penny, per data from CoinGecko and TradingView.

Binance CEO Weighs In On LUNA's Tumble Below 1 Cent And UST's Crash 8
LUNA Daily Chart (Source: TradingView)

LUNA’s circulating supply also went to the moon after UST holders supposedly tried to cash out of the depegged stablecoin. Terra’s algorithm allows stablecoin holders of Terra to exchange 1 UST for $1 using a mechanism that is designed to maintain the token’s dollar peg.

Binance CEO Weighs In On LUNA's Tumble Below 1 Cent And UST's Crash 9
LUNA Circulating Supply (Source: CoinGecko)

However, this process also mints LUNA coins and flooded the market with more tokens, further crashing LUNA prices. As of press time, the circulating supply stood as over 6.5 trillion. The Terra team also paused the network

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