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As the native token of Terraform labs Terra(LUNA) dropped by 100%, losing 100% of its value, many exchanges came forward to halt the trade. In a recent update, the largest cryptocurrency exchange Binance announced the delisting of the LUNA Perpetual Contract to protect the traders.
As mentioned previously, Binance Futures will conduct an automatic settlement on the $LUNA USDT-Margined Contract and then delist the Futures contract at May 12, 2022 3:30pm UTC.https://t.co/774JF0HcqP
— Binance (@binance) May 12, 2022
Moreover, the exchange also announced the removal of the UST trading pairs like BTC/UST, LUNA/UST, ETH/UST, BNB/UST and UST/USDT. Along with this, the platform also would cease the trading for BUSD-margined perpetual contract: LUNA/BUSD with effect from 1:30 am UTC, on 13th MAy 2022.
Binance will remove and cease trading on the following spot trading pairs at 12:50am UTC, May 13:
— Binance (@binance) May 13, 2022
🔸BTC/UST
🔸LUNA/UST
🔸ETH/UST
🔸BNB/UST
🔸UST/USDT
Binance will remove and cease trading on the BUSD-Margined Perpetual Contract: LUNA/BUSD trading pair at 1:30am UTC, May 13.
In addition to this, other exchanges like eToro and Bybit also has suspended the trading of UST pairs and also delist LUNA/BTC spot pairs. With the extreme measures taken to stop the future trading of LUNA & UST, it is now expected that the price may get stabilized very soon. On the other hand, the official Twitter account of TerraUST has put up its plans to stabalize the conditions and burn UST tokens.
1/ The prevailing peg pressure on $UST from its current supply overhang is rendering severe dilution of $LUNA.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022
The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads.
On the other hand, the Anchor Protocol also proposed to cut the yield rates from 19.5% to 4% to combat the current situation. Therefore, collective efforts are being made to stabilize the LUNA & UST price and in turn stabalize the entire crypto space. Now, will the LUNA price get back on track?