Three different ETP product providers, Terra (Luna) announced that they have ceased trading and distribution of shares in related investment vehicles.
As it is known, Terra lost almost all of its value within a week.
VanEck, Valour, and 21 Shares Suspend LUNA Products
VanEck, Valour and 21Shares companies, which offer LUNA ETP products in Europe, announced that they have stopped the distribution of shares due to two complete shutdowns on the network, which includes deliberately shutting down the decentralized network. All three products were down nearly 100% this week.
VanEck warned its investors on Friday that it will temporarily suspend the creation and redemption of shares for the VanEck Terra ETN product.
The product in question is traded in many European countries. The company cited “the drastic drop in the value of the token and the shutdown of the Terra network” as the reason.
In addition to this, VanEck said in his statement:
“Unable to perform LUNA operations on the Terra network. Therefore, it is not technically possible to accept stock creation and redemption transactions for the VanEck Terra ETN product.”
VanEck also said it “want to provide the market with a market maker as soon as possible and permitted.”
Similarly, according to the statement made by Valour, it was reported that “The trading of Valour Terra SEK product has been stopped due to the high volatility and uncertainty in the Terra ecosystem”.
In addition, Switzerland-based 21Shares stated in its statement that the Terra ETP product was suspended due to “intermittent and inconsistent operation of the LUNA network.”
*Not investment advice.