CZ Reveals Why He Shutdown LUNA And UST Trading On Binance

Sunil Sharma
May 13, 2022
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Changpeng Zhao, popularly referred to as CZ, is the founder and Chief Executive Officer of Binance. Speaking from his official Twitter handle, he revealed what prompted the decision to take LUNA and UST off Binance.

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Key elements that justify Binance’s decision to suspend LUNA and UST 

TerraUSD (also referred to as UST) and LUNA are the two most popular stablecoins in the crypto community with UST being dependent on LUNA.  Typically, stablecoins are a way of evading high volatility which is a common element of the crypto market by maintaining relative price stability through either the use of collaterals (fiat or cryptocurrency) or algorithms. Binance shutdown all forms of LUNA and UST trading on its platform following a huge decline in the crypto world which saw LUNA getting depegged. 

A few questions were raised about the sudden fall in the value of LUNA and why Binance delisted it off its platform. Changpeng Zhao, or CZ as he’s popularly known, took to his Twitter handle to give reasons for making the decision.The decision was taken in line with Binance’s policy of users protection in an event of excessive volatility.

He explained there was a glitch in Terra’s protocols and the decision was made to prevent Binance users from buying the newly minted LUNA which could’ve most likely led to a crash in accounts.

He expressed his anger and disappointment when he refrained from Binance’s position of neutrality and bashed the Terra team for their negligence to duty and failure to give a reply to Binance. He cited a previous case and commended their swift reaction and cooperation with Binance and ended with a promise to keep a close eye on things and get users updated on any and every development.

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What future holds for Terra after nightmare decline and shutdown?

In the wake of UST and LUNA crashing, Terra blockchain announced in the early hours of Friday, 13th May, 2022 that it was halting operations. The tweet further revealed the shutdown was necessary in order to allow the validators arrive with a plan of reconstitution and while it is uncertain what the plan is presently, there is a promise of updates. Terra LUNA had previously had an all time high of $119.18 back in April but at the time of publication, stood at just only $0.00002934. 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on X at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.