Crypto News: Binance To Delist LUNA/USDT Contracts Over Price Drop

Crypto News – Binance Major crypto exchange announced it will be delisting its Tether (USDT)-margined Terra (LUNA) futures contracts following a more than 99% drop in price.

iexclusivenews reports that Binance announced on Thursday that it would be adopting “precautionary measures” around its LUNA/USDT perpetual contracts.

With the intention of delisting the pair if the price falls below 0.005 USDT. On Wednesday.

The exchange changed the leverage and margin tiers for the LUNA-tied contracts.

With the maximum leverage set at eight times for positions under $50,000.

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iexclusivenews reports that Binance announced on Thursday that it will issue Binance USD (BUSD)-margined LUNA futures contracts as an alternative investment vehicle if LUNA/USDT was delisted.

The exchange claims it has experienced “slowness and congestion,” which has resulted in a large number of Terra network withdrawal transactions being reported as pending.

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

Why Luna Price Dropped

Meanwhile, iexclusivenews Nigeria reports that following a massive sell-off. The LUNA price has dropped more than 99% in the previous 24 hours, reaching $0.004 at the time of publication.

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Many tokens in the crypto market have been hit by the volatility, With Bitcoin (BTC) falling below $27,000 for the first time in 16 months and Ether (ETH) falling below $2,000 for the first time since July 2021.

LUNA/USDT price movement. Source: TradingView

Many exchanges have responded to FUD allegations about user funds circulating on social media amid high market volatility.

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On Wednesday, Celsius Network CEO Alex Mashinsky tweeted that the site

“has not incurred any substantial losses and all assets are safe.” Coinbase CEO Brian Armstrong also assured users that the company is “not in danger of going bankrupt.”

Do Kwon, a co-founder of Terra, hinted to a “rescue strategy” for TerraUSD (UST) on Tuesday.

Later adding that he backed community requests to boost the algorithmic stablecoin’s minting capacity. Kwon.

On the other hand, has yet to respond to the additional LUNA price drop.