Major cryptocurrency exchange Binance announced that it will delist its Terra (LUNA) margined Tether (USDT) futures contracts in the wake of a more than 99% drop in the price of the token.
In a blog post on Thursday, Binance said it would be taking “precautionary measures” around its LUNA/USDT perpetual contracts, with the intention of excluding the pair if the price drops below 0.005 USDT. The announcement came after the exchange changed the leverage and margin levels for LUNA-linked contracts on Wednesday, with the maximum leverage set at eight times for positions below 50,000.
As mentioned previously, Binance Futures will conduct an automatic settlement on the $MOON USDT-Margined Contract and then delist the Futures contract at May 12, 2022 3:30pm UTC.https://t.co/774JF0HcqP
—Binance (@binance) May 12, 2022
As mentioned above, Binance Futures will perform an automatic settlement on the USDT Margined LUNA contract and then delete the contract on May 12, 2022 at 3:30pm.
Additionally, Binance said it would launch Margined LUNA futures contracts on Binance USD (BUSD) on Thursday, ostensibly as an alternative investment vehicle should the LUNA/USDT product be withdrawn. According to the exchange, it has experienced “slowness and congestion”, which has caused a large number of withdrawal transactions from the Terra network to show as pending.
LUNA price has dropped over 99% in the last 24 hours, hitting $0.004 at press time following a sell-off. The volatility has affected many tokens across the cryptocurrency market, with Bitcoin ((BTC) falling below $27,000 and hitting a 16-month low, while Ether (ETH) fell below $2,000 for the first time. time from July 2021.
Amid extreme market volatility, many exchanges have responded to FUD rumors circulating on social media about user funds. Celsius Network CEO Alex Mashinsky told Twitter followers of him on Wednesday that the platform “has not experienced any significant losses and all funds are safe.” Coinbase CEO Brian Armstrong similarly told exchange users that the company has “no risk of going bankrupt.”
On Tuesday, Terra co-founder Do Kwon hinted a “recovery plan” for TerraUSD (UST), later adding that he supported community proposals to increase the minting capacity of the algorithmic stablecoin. However, Kwon has not released any updates following the further price drop of LUNA.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.