There are again a number of major developments to report regarding Terra (LUNA), the cryptocurrency that has completely collapsed. For example, some exchanges have removed the altcoin from their platform and the network has been paused.
Terra pulls plug from blockchain
Early this morning it was reported that Terra has frozen its blockchain. It’s the second time this has happened in the past day. The validators of the network pulled the plug on the blockchain at block height 7,607,789 with the aim of developing a plan for how to proceed.
The Terra blockchain has officially stopped at block 7607789.
Terra Validators have stopped the network to come up with a plan to reconstitute it.
More updates to come.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 13, 2022
As a result, no crypto can be sent over the network anymore. It is unclear how long this will be the case. However, it is an annoying scenario for people who currently still have LUNA. Because they can’t go anywhere.
Bitvavo pauses LUNA trading
The Dutch trading platform Bitvavo has decided to stop trading LUNA pause† Because the network is completely shut down, there is little liquidity. It also means that users cannot withdraw LUNA from their Bitvavo account at this time.
However, the exchange will come with a compensation scheme as the current situation means that users with LUNA in their account could have “unwanted exposure” to the cryptocurrency. The compensation consists of the following:
“Users will receive the EUR value of their LUNA the moment LUNA-EUR trading was paused 13-05-2022 8:20 AM (CET). These amounts will be automatically added to the user account later today (while the user keeps their LUNA) and are visible in the transaction history.”
Users are therefore allowed to keep their LUNA and can withdraw it as soon as the blockchain is restarted. But as mentioned, it’s not clear when this will be or if it will happen at all.
Binance Removes LUNA Completely
Crypto exchange Binance goes a step further and removes the LUNA and UST trading pairs from its trading platform. The exchange announced this early this morning.
Binance will remove and cease trading on the following spot trading pairs at 12:50am UTC, May 13:
Binance will remove and cease trading on the BUSD-Margined Perpetual Contract: LUNA/BUSD trading pair at 1:30am UTC, May 13.
— Binance (@binance) May 13, 2022