One of the world’s leading crypto exchanges BinanceSuspended withdrawals of native tokens LUNA and stablecoin UST due to the struggle to recover the Terra-based stablecoin’s pegged to the US dollar.
Binance announced in a blog post earlier this morning that it is suspending these two altcoin withdrawals, blaming “high volume pending withdrawals” caused by network congestion.
“Once we acknowledge that the network has stabilized again and the pending withdrawal volume has decreased, Binance will resume withdrawals for these altcoins. No explanation will be made on the subject.”
The announcement marks Terra’s algorithmic stablecoin, which is the third-largest stablecoin in terms of total issuance after USDT and USDC, which have fallen sharply against the dollar in the past few days. Terra USD (UST) came in the middle of a period of apparent turbulence for
The foundation is making a great effort to support UST. Luna Foundation Guard (LFG), a Singapore-based nonprofit established to support both Terra-based stablecoins and the wider Terra ecosystem, is valued at $1.5 billion to third-party trading firms. Bitcoin (BTC) and UST announced its lending plan. It is providing support for the stabilizer of the UST on May 9.
Despite all this support, the price of UST continued to decline against the price of USDT, the largest stablecoin pegged to the dollar. Binance data showed $0.6065 on Monday. It was hovering around $0.86 at press time and was showing some signs of recovery.
Meanwhile, the price of LUNA, the native asset of the Terra blockchain, which can be burned for UST under normal market conditions, has dropped from around $62.50 just 24 hours ago to around $28.50 at press time, but is now $31, according to data provided by CoinGecko. trades around.
It’s also significant volatility in the broader crypto markets that is keeping Terra and LFG from struggling. Bitcoin price briefly dropped below $30,000 yesterday and then rose to around $31,500 at press time.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.