The cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchanges eliminated Earth after its collapse and two disconnections from the blockchain. The price of LUNA dropped to zero.
Major cryptocurrency exchanges are taking action following the historic collapse of the cryptocurrency ecosystem. Earth .
Binance the largest exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. announced Friday the suspension of trading in LUNA and UST, the world’s native currencies. Earth . Its CEO and founder, Changpeng Zhao, unveiled the move in a thread on tweets in which he cited the company’s policy of “user protection”. . Zhao continued, explaining some of what happened and the reasons for the suspension.
An exponential amount of new LUNAs were minted due to flaws in the Terra protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. design. Some of our users, unaware of the large amounts of newly minted LUNA outside the exchange, started buying LUNA again, not understanding that as soon as deposits are allowed, the price is likely to plummet even further. Due to these significant risks, we suspended trading.
In the same vein, the exchange OKX also informed its users about the removal of UST and LUNA trading pairs.
The company said in a communiqué this Friday that the measure would begin at 10:00 UTC for trading pairs of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. (BTC), Avalancha (AVAX), Solana (SOL) and Ether the form of payment used in the operation of the distribution application platform, Ethereum. (ETH). The move came on top of previous suspensions of the margin lending and trading function for LUNA, as noted by CoinDesk . The swaps perpetuals were suspended at 8:00 UTC.
“ Seismic movements in the cryptomarket such as the ones we’ve seen this week tend to offer some pretty brutal lessons “ explained Lennix Lai, director of OKX in an email to the news outlet. The representative also argued for user protection and claimed that the recent UST crash had caused users to move away from direct investment in DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. (decentralized finance) protocols.
The reality is that centralized exchanges are set up to provide much higher levels of protection for users, regardless of what the markets are doing.
The saga of LUNA and UST
The measures to eliminate LUNA and UST from the exchanges centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. trading comes on the heels of the collapse of both currencies. As it has been reporting DiarioBitcoin , USD Land (UST), the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. native to Earth which is expected to maintain a stable price of USD $1, lost its parity with the dollar this week, reaching a low of 17 cents by the time of publishing.
The unpegging of the currency currency is a medium of exchange that defines value. was followed by a steep decline for its token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. brother LUNA. UST operates a mint and burn mechanism linked to LUNA to maintain its parity; a system that proved to be a failure this week. In the midst of the incident, LUNA plummeted to zero, having traded above USD $80 just a week ago.
The collapse of the Earth motivó a los validadores de esa cadena de bloques a desconectar temporalmente la red ayer por la tarde, a modo de abordar cualquier posible riesgo de ataque de gobernanza. Este viernes, los desarrolladores volvieron a announce a second disconnection at block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. 7,607,789 as LUNA and UST have continued to drop.
The price levels are too low to “ prevent government attacks “had said the organization of Earth in a tweet . While the Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. was reactivated a few minutes ago, the instability of that network a network refers to all nodes in the operation of a blockchain at any given moment in time. and its underlying ecosystem could be a reason for exchanges to stop offering trades on that platform, as well as trading on its tokens .
Still available on FTX and other exchanges
However, as a review CoinDesk not all the exchanges centralized have still opted to eliminate Earth in full. LUNA and UST trading is still available on several platforms, including FTX, KuCoin y Gate.io based in China.
According to the media, citing data from CoinGecko UST was negotiating in FTX y KuCoin with a volume how much cryptocurrency has been traded over a set period, such as the past 24 hours. of USD $678 million and USD $248 million during the last 24 hours, respectively. Also the Thailand-based exchange, Bitazza The UST, was negotiating with both LUNA and UST until early this morning Asian time, but then suspended both.
The exchanges’ decision comes in the face of an unprecedented situation for crypto history. While there have been many failed cryptocurrency projects over the years, Earth se trata posiblemente de uno de los casos más exitosos de los últimos tiempos, que muestra sus fallas y colapsa en cuestión de unos pocos días.
Just a week ago USDT was the largest decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. algorithmic stablecoin on the market, with a market an area or arena, online or offline, in which commercial dealings are conducted. cap of nearly $20 billion. Its sister, LUNA, was not far behind. Last month, the token traded at a high of USD $116 which placed it among the top 10 major cryptocurrencies. LUNA now trades at USD $0.000023.
CZ’ is disappointed
While Earth and the organizations behind the project made several efforts to rescue the coins, these appeared to be insufficient. In his most recent speech on Twitter, Zhao from Binance stated disillusionment for the way the events unfolded and the team’s response to the collapse.
I am very disappointed with the way the Terra team handled (or didn’t handle) this UST/LUNA incident. We asked your team to restore the network, burn the extra minted LUNA, and recover the UST plug. So far, we have not gotten any positive response, or much response at all.
5. I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response, or much response at all
– CZ changpeng Zhao (CZ) is the founder of crypto exchange Binance. ???? Binance (@cz_binance) May 13, 2022
- Terra’s Blockchain halts to avoid a governance in the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project. attack, LUNA drops 99%.
- BlackRock and Citadel reject conspiracy theories, deny being behind UST collapse
- Prior to UST, Do Kwon created another stablecoin project that also failed: report
Article by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva