Binance dragged its support from Terra amid its critical situation
The morning of the 13th of May started with one more negative news for the Terra ecosystem.
Terra blockchain Network operates its Luna token as a native token of the network and also operates its UST stable coin. Since Monday of this week, UST & Luna coins are continuously crawling at ground level. On one side Luna crashed down by around 2,211,302 times, on the other hand, UST stablecoin is down by around 82% from its $1 stable value.Ā
In this bitter situation, Binance, the first ranked crypto exchange, announced to delist trading of Luna & UST coins for the users.
However, UST & Luna coin is available in the trading section of the Binance exchange but only in Spot and opposite to the BUSD coin, a stable coin by Binance exchange. But it is not worthy at all for the traders.
However, the exchange didn’t provide a proper reason behind this decision but explained indirectly that the decision has been taken to protect the crypto investors against high volatility.
“By our policy to protect our users during excessive volatility, Binance shall adjust the tick size (i.e. the minimum change in the unit price) of certain spot trading pairs.”
As Binance is a first-ranked crypto exchange, So the decision to halt the trading for Luna & UST resulted in one more big hammer hit on the Terra ecosystem.
On 12 May, Binance CEO Changpeng Zhao took to Twitter to share his opinion on the situation of the crypto market due to UST.
Zhao said that the crypto industry is evolving with the phase of innovation and UST was one of the failures of the Innovations. And also suggested other crypto projects step with practical work, instead of to take support of the promotional strategy.
Read also: Terraā team Decision to halt the network 2 times resulted in more negative impact
