– LUNA, the governance token behind the Terra ecosystem, has fallen so much, so fast that Binance – the world’s largest crypto exchange – is turning its back against it.
– On May 12, Binance announced the suspension of perpetual contracts on the LUNA/USDT pair after lowering the authorized leverage to 8x.
– This move comes after a series of events that caused the price of LUNA to plummet by more than 99%, inflicting millions of dollars in losses to investors in the crypto community.
– Binance will be removing cross and isolated margin pairs, spot trading pairs BUSD margined perpetual contracts on LUNA.
– The CEO of Binance, Changpeng Zhao warned via his official Twitter account that it was necessary to respect the market when trading it since it is a “new market” with new stablecoins.
– On May 11, the price of LUNA fell from $40 to less than $1. Such was the case that there were even people in the Reddit community who spoke of suicide, while others reported losing their savings and house mortgages due to the crash.
– In less than a week, anyone with $100,000 invested in Terra’s project went down to just under $500 in total assets.
– The team behind Terra is now considering all proposals to resuscitate LUNA and UST – even ones that would have been unthinkable before, like altering the token’s algorithm.