Connect with us

Exchanges

LUNA, UST re-listed on Binance – ‘there is progress’

Published

on

LUNA, UST re-listed on Binance – ‘there is progress’

Binance › Terra › Exchanges

Binance announced that it will relist LUNA/BUSD and UST/BUSD pairs for spot trading starting 14:00 UTC on May 13.

Advertisement

2 min read

Updated: May 13, 2022 at 6:44 pm

Cover art/illustration via CryptoSlate

Advertisement

Binance said it will relist LUNA/BUSD and UST/BUSD have been re-listed after being taken down early May 13.

Following a historic week in crypto where UST de-pegged to 11 cents and LUNA lost 99.999% of its value, the world’s largest exchange has reactivated trading in the BUSD pairs.

Binance will resume spot trading for the following trading pairs at 2:00pm UTC, May 13 2022.

🔸 LUNA/BUSD

🔸 UST/BUSDhttps://t.co/T4oD0dQdHT

— Binance (@binance) May 13, 2022

Advertisement

Both coins were delisted with the CEO of Binance, CZ, stating that there had been almost no communication from the Terra team regarding a recovery plan. He noted that the decision was made “to protect our users at this time.”

Trading was halted for less than 24 hours before it was restarted. The relisting was delayed by several hours but is now live, with LUNA trading around $0.00007 and UST at $0.09. CZ urged “extreme caution” when trading these coins, saying:

“Was in a no-phone meeting for 2hrs. At least, there is progress.

Luna blockchain resumed, no more minting.

And deposits, withdrawals and trading resumed. Trading is important for existing holders.

Advertisement

Please do NOT buy a coin just because trading is on. DYOR! EXTREME caution!”

The nature of the “no-phone meeting” or who was involved is unknown. However, it appears that extremely sensitive information may have been discussed due to the removal of any potential recording devices.

In a previous tweet, CZ also condemned how the matter was handled, declaring:

“I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team.”

Currently, several proposals are being reviewed by the Terra community to attempt to salvage what is left of the ecosystem. However, there have been no confirmed reports of what will be done.

Advertisement

The number of LUNA tokens currently in circulation is 6.5 trillion coins, with a market cap of $600 million. As CZ declared there would be no more minting, it is presently unclear how the UST peg is being maintained.

UST has always been pegged to $1 worth of LUNA; if LUNA is not being burned or minted in relation to UST, then how can it retain a peg?

Advertisement

Exchanges

FTX US looking for strategic acquisitions after ‘notable growth’ in users

Published

on

FTX US looking for strategic acquisitions after ‘notable growth’ in users

U.S.› FTX › Bitcoin · Ethereum › Exchanges

FTX U.S. is targeting acquisitions and mergers that can help it secure more users and win regulatory licenses.

Advertisement

2 min read

Updated: May 25, 2022 at 12:32 pm

Cover art/illustration via CryptoSlate

Advertisement
👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

FTX US President Brett Harrison said the exchange is looking for strategic acquisition opportunities after seeing “notable growth” in users.

Harrison made the revelation at the World Economic Forum 2022 in Davos while discussing the exchange’s performance in 2021. Although the firm’s revenue numbers are not yet public, Harrison said FTX US saw “notable year-over-year growth in terms of user accounts.

He attributed this growth to the exchange’s increasing marketing efforts and an improved retail user experience. Other developments include launching a non-fungible token (NFT) marketplace and rolling out a stock trading interface.

Advertisement

Harrison said FTX US — valued at $8 billion — is unsure about disclosing plans for additional fundraising in 2022. However, he added that the company is in a good position in terms of capital and cash.

He further noted that the exchange aims to use these resources to strengthen its existing business, adequately fund its clearinghouse for its derivatives endeavors, and look around the market for potential merger and acquisition opportunities.

Regarding mergers and acquisitions, Harrison said FTX U.S. is targeting multiple sectors. Specifically, the firm is fishing for deals that will help expand its user base or win regulatory licensing.

FTX U.S. is planning to offer BTC and ETH futures

FTX US launched at the end of 2020, and its userbase has grown from 10,000 at the start of 2021 to 1.2 million users as of May. The exchange’s spot trading volume currently stands around $300 million.

Advertisement

Moreover, the company acquired LedgerX, which has the CFTC licenses required to run a futures exchange and clearinghouse in the U.S. Harrison added that FTX U.S. has already applied to offer Bitcoin (BTC) and Ethereum (ETH) futures to U.S customers.

According to him, the approval of this application would significantly boost the exchange’s potential profits. Explaining why FTX U.S. believes it can make a difference in the futures market, Harrison said FTX U.S plans to offer the first real-time 24/7 margin for futures. He further noted that talks with the CFTC have been positive thus far.

Praising the CFTC, Harrison said the regulator understands all the nuances of crypto trading. Moreover, Harrison said the watchdog understands all the innovations crypto players are trying to bring into the market. 

Advertisement
Continue Reading

Exchanges

Investors furious after LUNA profits removed following “glitch” on Woo X Exchange

Published

on

Investors furious after LUNA profits removed following “glitch” on Woo X Exchange

Terra › Rumors

A group of seven investors claim that Woo X reversed profitable LUNA trades of up to $300K due to a glitch in the system

Advertisement

4 min read

Updated: May 24, 2022 at 10:05 pm

Cover art/illustration via CryptoSlate

Advertisement
👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

On May 22, CryptoSlate received numerous reports from Investors that Woo Exchange had reversed dozens of trades and thus deleting profits from users’ accounts.

The incidents allegedly took place around May 16 during the UST de-peg event that had an enormous correlated effect on the price of LUNA. Traders within the group claim to have had up to $300,000 in profits removed from their accounts, with some being left with negative balances after removing LUNA tokens from the exchange.

The allegations came from several investors who had provided screenshots of their accounts before and after the event as proof that the exchange removed their profits. The below chart, made by one of the investors, shows the price of LUNA across a several-day period with six wicks down below 0.00001.

Advertisement

The commentary on the chart, also added by an investor, states that they do not believe the downward price spikes were glitches but rather a “huge whale was dumping their position, which caused the price to fluctuate.”

We reached out to Woo X directly and received the following reply from Ben Yorke, VP of Marketing,

“The WOO X order book encountered an error at around 10:30 UTC, about thirty minutes after trading had resumed on LUNA/USDT. The glitch resulted in a dislocation, with the token being traded at up to 90% less than the market price on other venues.

In events like this, WOO X always seeks to protect the interests of users by ensuring that system-related errors will not result in erroneous losses. The rollback is a common response in both CeFi and traditional finance, protecting users who bought or sold at dislocated prices.

Advertisement

After a user noticed the glitch and posted it on social media, a small group of users took advantage of the price dislocation. They executed thousands of transactions outside the normal market range in a short time frame resulting in unexpected gains and losses.

WOO X opened a full investigation, and communicated personally with affected users. At the conclusion, the users were awarded with a 10% bug bounty.

As a result, no user experienced any financial loss as a result of the dislocation. WOO X has since resolved the issue that caused the dislocation and implemented more safeguards to ensure that future incidents can be minimized.

Woo X claims that a glitch was responsible for the downward price action causing the price to show “up to 90% less than the market price on other venues.” However, the TradingView chart below indicates that LUNA/BUSD traded as low as 0.00000018 on May 13, indicating an extremely volatile market.

Advertisement

Except for the few downward wicks, the price never reached anywhere near this price on Woo X. Question can be raised as to why the price of LUNA on Woo X never reached the lows shown on Binance.

Source: TradingView

We reached out to the investors via Telegram and have spoken to many of them directly over the past 48 hours. Upon reading Yorke’s response, one investor commented,

“Woo’s story is wrong… The chart shows that the first spikes down started as early as the morning of May 16. After that many more spikes followed (in the evening of May 16).

They (Woo) are now pretending that they have acted very firmly. Something that Crypto.Com did, by the way, and then apologized. If indeed there was a glitch. Then why did they let traders trade for two days before they stopped trading the pair Luna-USDT.”

A similar event did indeed occur on crypto.com shortly after LUNA was relisted. Kris Marszalek, CEO of Crypto.com, took a different approach stating,

Advertisement

We will also honor all Luna transactions from yesterday, including those with price glitch ie. there will be no reversals.

Our team is working on the credits for users and it should be done within the hour.

Thank you for your patience as we work through it 🙏 https://t.co/vBpYNoWhiJ

— Kris | Crypto.com (@kris) May 14, 2022

In reply to a question comparing the Woo X response to that of Crypto.com, Yorke stated,

Advertisement

“Not familiar with the size and the scope of incidents on other exchanges, but seems like others may have made an ad hoc decision to limit negative PR.

At WOO X, we prioritize consistency and fairness with price execution, and as a result, users don’t have to worry about the system executing erroneously and causing them losses.”

There seems to be little explanation for why these downward wicks should be considered erroneous and how it is possible to maintain consistent prices during a black swan event such as the UST de-peg. Many exchanges suffered issues around liquidity and halted trading during the event.

Woo X allowed users to trade on their platform and then apparently reversed trades that allegedly did not suit them. Woo X offered all traders who profited from said transactions a 10% bug bounty fee in response to the incident. Some accepted this, while others believe they are due their funds in full. Regarding the bug bounty, one investor told us,

“the measures taken by Woo are not normal in CEFI and traditional finance, because they have taken 90 percent of the profits from the users who trusted them under the name we protect our users.

This is hypocritical. The users who traded on these opportunities were not aware of any harm. They traded lawfully.”

Advertisement

Further, another investor claims they have, in fact, incurred considerable losses from this event while refuting that they jumped on a Twitter trading tip,

“I was trading, saw the dips happening right in front of my eyes, decided to put a liw order in and started trading.

Made quite some money, and before I went to bed i sent 75% of that to my bank and bought woo coins with the 25% left.

When i woke up, account was locked. And after a day everything was turned back.. leaving me in a big fat minus on the exchange balance.

As i already spent quite some of that money to debts due to 2 years of corona, i asked support how long i can be in minus.”

Advertisement

The group, who seem very knowledgable in their understanding of trading, also brought to our attention a case against Quoine, which they believe sets a precedent for their case.

One of the members commented, “I can see why crypto.com’s CEO Kris has abandoned his reversal plan. He has apparently taken good legal advice and happily reversed. Hopefully, Woo will reverse their actions by following crypto.com in their strategy.”

Advertisement
Continue Reading

Altcoins

Litecoin’s privacy upgrade could lead to delisting from South Korean exchanges

Published

on

Litecoin’s privacy upgrade could lead to delisting from South Korean exchanges

Korea› Litecoin › Altcoins

Citing the altcoin’s recent privacy upgrade, UPbit and Bithumb issued investment warnings against altcoins, which could potentially lead to delisting.

Advertisement

1 min read

Updated: May 23, 2022 at 6:24 pm

Cover art/illustration via CryptoSlate

Advertisement
👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

Two of South Korea’s largest cryptocurrency exchanges, UPbit and Bithumb, issued investment warnings against Litecoin (LTC) on May 23, citing the altcoin’s privacy upgrade.

Both exchanges are considering delisting the altcoin in light of potential legal challenges posed by the upgrade.

Litecoin’s Mimblewimble Extension Blocks (MWEB) upgrade was first introduced in November 2019 and went live last week. It enhances the confidentiality of transactions and allows users to send transactions to the extension block and back to the main chain, obscuring the amount sent and the wallet addresses.

Advertisement

While Litecoin investors welcomed the heightened privacy, it makes tracking transactions difficult, which is against South Korea’s financial laws. The Act on the Reporting and Use of Specific Financial Transaction Information requires virtual asset service providers to add know-your-customer (KYC) systems and measures against money laundering.

“We are striving to prevent money laundering and terrorism financing through digital assets that have technology that makes transaction records unidentifiable,” UPbit wrote in an announcement. Bithumb issued a similar statement.

UPbit added that any deposits made via MWEB will lead to a permanent loss of funds since UPbit cannot verify the addresses or transaction amounts.

Historically, Korean exchanges end up delisting tokens after similar warning statements. Bithumb and Upbit account for most of South Korea’s crypto trading volume. Coinone and Korbit, two other leading exchanges in the country, are yet to make any statements.

Advertisement

Created in 2011 from a Bitcoin fork, Litecoin is among the earliest competitors of the largest cryptocurrency. It is currently the eighteenth largest cryptocurrency, with a market cap of $5.13 billion.

Continue Reading

Trending