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Uncategorized

Terra’s LUNA And UST Have Been Re-Listed On Binance.

May 14, 2022 - Around 3 mins mins to read

Following Terra UST’s de-peg, Binance CEO Changpeng Zhao (“CZ”) voiced dissatisfaction with how the entire UST/LUNA situation was handled.

image 2022 05 14 092139601

The business executive detailed the reasoning behind Binance‘s first decision to suspend LUNA and UST trading in a series of tweets on Friday, stating that “At Binance, we prioritize user protection.”

Terra and Binance’s disagreement reached a breaking point, according to CZ, when validators chose to halt the entire network. As a result of the network’s failure to produce blocks, deposits and withdrawals from any exchange were blocked, putting clients at risk.

CZ wrote:

“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. Due to these significant risks, we are suspending trading”

He went on to say how disappointed he was with the Terra Team’s handling of the UST/LUNA. CZ revealed that they had previously asked the Terra team to “restore the network, burn the additional minted LUNA, and retrieve the UST peg,” but that no response had been received.

He then compared it to the way the Axie Infinity’s developer handle the Ronin attack:

“This is in sharp contrast to Axie infinity, where the team took accountability. Had a plan and were communicating with us proactively and we helped” 

Terra's LUNA And UST Have Been Re-Listed On Binance.
Terra’s LUNA And UST Have Been Re-Listed On Binance.

Binance reported earlier today that it had banned trading of the LUNA and UST pairings after issuing a cautionary notice the day before. After a 2-hour meeting with undisclosed parties, CZ claimed that Binance had resumed trading for the aforementioned coins.

Meanwhile, data analytics website CryptoQuant claimed on Friday that a large amount of Bitcoin was going from Gemini to exchanges, with part of it being traced back to the Luna Foundation Guard (LFG) wallet.

LFG announced a $750 million BTC sales to OTC businesses on May 9 to protect the UST peg. The LFG later announced that it had loaned out 37,000 BTC to market makers (MMs), stating that “it is currently being used to acquire UST.” Later, CryptoQuant would track the BTC into the Gemini cryptocurrency exchange, where it was dumped for UST.

The decision of Gemini, which is frequently mislabeled as Coinbase or OKX, has also been questioned, putting to rest CZ’s allegations that Terra’s team lacks responsibility.

UST is currently trading at $0.16, still a long way from the $1 mark, while LUNA has dropped to $0.0001086.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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