It took just seven days for the Terra (LUNA) ecosystem to spiral down as prices plummeted from $85 on May 5 to nearly $0 on May 12. As the market unraveled, LUNA’s trading volume saw a strong recovery of over 200% over the weekend.
As a result of the decoupling of UST, which sent the LUNA market crashing, LUNA investors reflected the price drop, as CoinGecko recorded trading volumes declining to $178.6 million on May 13, a figure that it was last seen in February 2021.
Terraform Labs CEO and co-founder Do Kwon sought damage control on the same day he proposed a revival plan for Terra’s comeback, which involves compensating UST and LUNA holders for holding the tokens during the crash.
Despite the risks involved, Terra’s “insane volatility” remains an attractive market for many short-term investors, primarily due to the fact that LUNA momentarily gained 600% in value on May 14.
(only need a few more 100x’s to get back to $1)
— Luke Martin (@VentureCoinist) May 14, 2022
(just needs a few 100x more to get back to $1)
As investors try to recoup their losses and others try to cash in on Terra’s recovery, LUNA’s trading volume soared by more than 200% to $6 billion. Before the fall, the LUNA ecosystem consistently recorded more than $2 billion in trading volume on average over the past two years.
However, just as LUNA prices crashed on the morning of May 10-13, its trading volume soared as investors tried to cut their losses of between $5 billion and $16 billion. At its peak, LUNA’s trading volume hit an all-time high of 16.15 billion on May 11.
Due to the various factors mentioned above, LUNA recovered its trading volume and is trading at $0.00025 at the time of writing. According to data from CoinMarketCap, cryptocurrency exchange Binance accounts for 68.26% of LUNA’s trading volume, followed by KuCoin at 9.52% and FTX at 1.13%.
On Friday, Crypto.com users raised concerns about LUNA trades being invested on the exchange’s mobile app.
Kris Marszalek, CEO of Crypto.com, later revealed that an internal error caused the system to display incorrect prices, leading numerous investors to collect 30-40x profits.
There was a lot of customers who were buying at wrong prices and of course some also jumped onto the opportunity to exploit the glitch to the maximum.
We reversed ALL trades.
Some customers saved a ton of $ and are thanking us, some didn’t abuse the glitch and are bashing us.
— Kris | Crypto.com (@kris) May 13, 2022
There were many customers who bought at the wrong prices and, of course, some also took the opportunity to exploit the flaw to the fullest.
We have canceled all operations.
Some customers saved a ton of dollars and thank us, others didn’t abuse the bug and criticize us.
As a result, Crypto.com temporarily blocked all users from trading. After a day of reviewing the alleged system failure, Marszalek reported that “all user accounts have been re-enabled.”
As Cointelegraph reported, the firm has offered $10 of its in-house Cronos (CRO) token as a goodwill gesture to affected investors.
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