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Crypto.com Reverses Trader’s LUNA Transactions From May 12

coinquora.com 14 May 2022 11:35, UTC
Reading time: ~2 m

Crypto exchange Crypto.com has announced that its users who traded Terra’s native token, LUNA, on May 12 between 12:40 and 13:39 (UTC) did so with the wrong price. Terra’s death spiral is expected to be the reason for the mispricing.

Crypto.com stated that they were able to spot the problem very quickly which led to trading being suspended on the platform till further notice. Crypto.com stated that “trading remains halted until further notice.”

Market participants interpreted this to mean that the exchange had reversed profitable LUNA transactions by traders attempting to exit the cryptocurrency after it had been in a death spiral for the last few days. Unfortunately, traders are not happy with the compensation, but Crypto.com is trying to rectify this by offering affected users $10 worth of Cronos (CRO), the exchange’s native token.

LUNA’s loss in value has led multiple exchanges to delist LUNA and TerraUSD (UST) assets. Crypto.com is one of these exchanges.

Another exchange making the same move is Binance, the biggest crypto exchange in terms of trading volume. The firm’s CEO, Changpeng Zhao, stated that “I am very disappointed with how this UST/LUNA incident was handled (or not handled)  by the Terra team.”

He added that “we requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response, or much response at all.”

Another exchange making the decision to delist LUNA is OKX. The director of OKX, Lennix Lai, state dthat “seismic crypto market movements like we’ve seen this week tend to deliver some pretty brutal lessons, and we’re seeing a flight away from direct investment in DeFi protocols in the wake of the UST breakdown.”

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