It was just a couple of days back when Terra USD (UST) and Terra (LUNA) prices plunged to the bottom. The incident sent the entire cryptocurrency industry into a state of shock. For the first time in the history of crypto, a protocol other than Bitcoin (BTC) shocked the entire crypto sector.
Among the rest of the crypto-verse, the users who owned and traded in UST and LUNA have been affected the most. If only the demise of UST and LUNA wasn’t enough, Binance has just dropped another bomb on the UST/LUNA investors.
Binance Suspends UST & LUNA
The entire cryptocurrency industry is very concerned with the protocols operated by Terraform Labs. Out of all the users, the protocol investors are uncertain about their future.
On May 13, Binance, the largest cryptocurrency exchange made an alarming announcement involving UST and LUNA. With immediate effect, Binance has suspended any trading pairs linked with UST and LUNA.
At the moment, it is just Binance that has suspended any kinds of activities involving cryptocurrencies offered through the Terra ecosystem. Binance officials have confirmed that it is due to the algorithm stablecoin’s crash they have decided to suspend the assets.
The official announcement has been made by Binance through the Twitter account. It confirms that from May 13, all spot trading features for the UST/BUSD, LUNA/BUSD, and other cryptocurrencies have been banned. Binance has even suspended the withdrawal feature for both cryptocurrencies through its platform.
According to the officials, they cannot confirm when the services will be reinstated. They have hinted that they will wait for the problem to be fixed before they reinstate the particular services. It is yet to be confirmed when the issue with the Terra network will be solved.
TerraForm Labs is working to solve the Problem
Being unable to interact, trade, and withdraw their investments on the Terra network is the worst thing the investors could ask for. However, TerraForm Labs has good news for the users. The CEO at TerraForm Labs has just proposed a strategy for fixing the problem with the Terra network.
In the presented “Proposal 1164”, the TerroForm Labs CEO, Do Kwon has shared the measures for dealing with the de-pegging of UST. He has also proposed a strategy to regain the lost trading value of LUNA.
For now, the expansion of the pool for LUNA, staking of LUNA, and burning of UST are the proposed ideas. If things work out, then the prices of both cryptocurrencies on the Terra network may recover.
The recent de-pegging resulted in TERA losing 99% of its value while UST lost more than 75% of its value. As the strategy comes into play, the investors may soon hear the good news of Binance re-instating the pairs.