UST, an algorithmic stablecoin pegged to the US dollar belonging to the Terra ecosystem, fell by 40 percent against the dollar to $0.60 today. Normally, the value of this coin was supposed to be stable at $1. Terra (LUNA) also experienced a 60 percent drop. Following these developments, Binance, the world’s largest cryptocurrency exchange by trading volume, temporarily suspended the withdrawals of LUNA and UST. Here are the details…
Binance stops withdrawals for LUNA and UST
Terra’s algorithmic stablecoin UST has dropped an astonishing 40 percent against the dollar to $0.60. This resulted in the massive liquidation of Terra’s native cryptocurrency LUNA, as well as UST. LUNA dropped from $62.34 to $24.85 in the 24-hour range. At the time of writing, it is changing hands at $ 35.84. Following these developments, crypto exchange Binance announced that it is temporarily suspending withdrawals on its LUNA and UST stablecoin. The official announcement is as follows:
Withdrawals for LUNA and UST tokens on the Terra (LUNA) network are temporarily suspended as of 05:20 on May 10, 2022 due to large pending withdrawals. This is due to network slowness and congestion. Binance will restart withdrawals for these tokens once we detect that the network is stable and pending withdrawal volume is decreasing. We will not notify users with any further announcement. We apologize for any inconvenience.
24h LUNA chart Luna Foundation Guard start liquidating BTCs?
As we reported on Kriptokoin.com, the Luna Foundation Guard, which is known to hold large amounts of Bitcoin (BTC) in its reserves, has started liquidating its Bitcoin reserves to buy UST and bring stability to the troubled UST stablecoin. According to available data, LFG’s BTC address transferred 28,205 BTC to Binance. Previously, he transferred 42,530 BTC.
However, the latest update by Luna Foundation Guard shows that Bitcoin reserves are loaned to market makers (MM). It is stated that a certain part of the most recently withdrawn amount of 37,000 BTC was loaned to MMs, while a certain part was used to purchase UST.
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