Key Takeaways:
- Terra (LUNA) thrown out of several major exchanges.
- Binance CEO does not believe the project can recover.
- FTX chief calls LUNA a bad investment, not a Ponzi scheme.
Note: Binance has relisted LUNA and UST tokens
YEREVAN (CoinChapter.com) – Terra, the algorithmic stablecoin issuance platform that ranked high in the top 10 cryptos previous to May 7, saw its governance token LUNA delisted on several major trading platforms, such as Binance and OKX.
LUNA delisted from major trading platforms
Changpeng Zhao, Binance’s chief executive, posted a thread explaining the exchange’s decision. The CEO asserted that Binance “prioritizes user protection.”
An exponential amount of new LUNA was minted due to flaws in the design of the Terra protocol. Their validators have suspended their entire network, resulting in no deposits or withdrawals possible to or from any exchange.
continued Zhao.
Also read: LUNA suicide shakes the crypto market; Do Kwon “heartbroken” – what happened to Terra?
Some people in the Twitterverse called Zhao’s position into question. For example, Zack Guzman, a reporter for Yahoo Finance and CNBC, did not buy into the CEO’s comment on not knowing the Terra project too well.
Also read: Terra chain halts after LUNA crashes 99.9% – can the token pull a phoenix?
According to the comments in the Terra-dedicated Reddit community, many traders wonder will LUNA be relisted. However, answering the question “can LUNA recover?” is difficult at this point, as the platform’s situation is dire.
Terra dead, or can LUNA recover?
Terra’s CEO Do Kwon posted several proposals to revive LUNA. However, it is unclear what route the platform will take. One of the proposals offered to fork the blockchain. Binance CEO called the attempt “wishful thinking” and asserted that forking never brings the new version any value.
Is LUNA dead? Not yet, as its price stabilized at a fraction of a cent. Moreover, several platforms chose not to get LUNA delisted and disagreed with Zhao’s outlook.
Also read: Terra (LUNA) and its stablecoin, UST, tank as Binance halts withdrawals citing network congestion.
FTX did not delist LUNA
For example, FTX, a crypto exchange with a daily trading volume of over $8 billion, kept LUNA for the time being. Its CEO Sam Bankman-Fired commented on Terra’s demise and asserted that the latter is not a Ponzi scheme. In detail, he responded to a tweet that compared Terra’s Do Kwon to Elizabeth Holmes, a biotechnology entrepreneur with a criminal fraud conviction.
The LUNA/UST mechanism wasn’t misrepresented -it was, in fact, very transparent. And, I think it was transparently going to falter at some point. Do Kwon obviously stood by it, morally and in terms of press, long after he should have backed off.
But he didn’t claim that UST was backed 1:1 by USD. He claimed, accurately, that it was backed by a bunch of volatile assets. It was very publicly clear that those assets might go down, and the rest followed. Again–I don’t want to condone the behavior. But it’s different.
further commented the CEO in the thread above.
Also read: Terra makes ‘fishy’ attempts to maintain UST’s dollar peg as LUNA dips 25%.
Will LUNA be relisted on major platforms like Binance? It is not clear. But the project’s community has the support of other trading platforms that chose not to delist tanked LUNA and UST. Time will tell if they made the right choice.
