Binance Halts LUNA and UST Withdrawals Amid Market Volatility
- Binance has temporarily restricted withdrawals for the UST and LUNA cryptocurrencies.
- The restrictions were put in place due to network congestion and a high volume of pending withdrawal transactions.
- Binance plans to reopen withdrawals for the tokens once the network is stable and the volume of pending withdrawals has decreased.
- The announcement comes amid significant volatility for Terras algorithmic stablecoin UST, which has recently fallen substantially against the dollar.
- The Luna Foundation Guard (LFG), a Singapore-based nonprofit dedicated to supporting Terra-based stablecoins and the broader Terra ecosystem, has revealed a plan to lend $1.5 billion in bitcoin and UST to third-party trading firms to support USTs peg on May 9.
- Despite this, the price of UST has fallen in comparison to USDT, the largest dollar-pegged stablecoin.
- Terras official Twitter account urged its users to refrain from spamming the network.
- The LFG has drained its Bitcoin reserves to maintain the Stablecoin peg.
