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Exchanges begin delisting LUNA, Binance explains why

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Exchanges begin delisting LUNA, Binance explains why

Binance › Terra › Uncategorized

Terra has announced proposals to correct the state of things by burning UST, but that may not be enough to remedy the network.

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2 min read

Updated: May 13, 2022 at 3:12 pm

Cover art/illustration via CryptoSlate

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The world’s largest exchange by trading volume, Binance, has delisted its trading pairs for Terra’s LUNA

The exchange announced that it had canceled all pending orders, ceased trading, closed user positions, and conducted an automatic settlement of all LUNA trading pairs.

Binance decided to delist LUNA when its value fell by 100% after the UST stablecoin de-pegged from the dollar.

In accordance with our policy to protect our users during excessive volatility, Binance shall adjust the tick size (i.e., the minimum change in the unit price) of certain spot trading pairs.

Several other exchanges have reached the same conclusion and decided to delist the token, including Bybit, eToro, and Crypto.com.

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CZ explains Binance’s position

Changpeng Zhao, the CEO of the crypto firm, in a series of tweets, revealed why the exchange was “suspending LUNA and UST trading.”

1. At #Binance we prioritize user protection. We made the decision to suspend LUNA and UST trading. Here’s why.

A thread 👇

— CZ 🔶 Binance (@cz_binance) May 13, 2022

Per his statement, some users might be unaware that Terra’s developers were still minting new units of LUNA outside the exchange. CZ said the minting would lead to a further crash of the asset’s price immediately if deposits were allowed.

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CZ said:

Very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response, or much response at all.

Other exchanges warn against trading Terra

South Korean crypto exchange Korbit told investors to watch their investments in LUNA closely. Another major exchange, Coinone, also temporarily suspended trading the token.

Bithumb designated an investment warning item to warn investors who might want to get involved.

Additionally, a decentralized finance protocol, Venus, announced it was also suspending its LUNA market trading because of the risks.

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“Given the continued risks of the LUNA market and in order to eliminate the possibility of further shortfall, the community has asked to suspend the LUNA market effective immediately,” the statement reads.

Terra developers working on stemming LUNA bleed

The official account of Terra has announced proposals to correct the state of things by burning UST, but that may not be enough to remedy the network.

The Terra blockchain was officially halted at a block height of 7603700.https://t.co/squ5MZ5VDK

Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.

— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022

Terra announced it was halting the network “to prevent governance attacks following severe $LUNA inflation.” However, after releasing a patch, the network has resumed its block production.

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Aave

Crypto Firms Launch Community-Powered Scam Reporting Platform ‘Chainabuse’

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Crypto Firms Launch Community-Powered Scam Reporting Platform ‘Chainabuse’

Several crypto firms, including Binance and Circle, have launched a new crypto scam reporting platform. The tool “empowers anyone in the crypto economy to warn others about scams, hacks or other fraudulent activity as they encounter it.”

New Crypto Scam Reporting Platform Launched

A number of crypto firms have joined forces and launched a new, multi-chain scam reporting platform. TRM Labs, Circle, Solana Foundation, the Aave Companies, Hedera, Binance.us, and Civic announced last week “the launch of a new community-powered scam reporting platform, Chainabuse.”

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The platform, operated by blockchain intelligence firm TRM Labs, “empowers anyone in the crypto economy to warn others about scams, hacks or other fraudulent activity as they encounter it,” the announcement details, elaborating:

The free tool enables crypto users, victims of financial crimes, and crypto businesses to take an active role in making the crypto ecosystem a safer place to operate.

Currently, users can file reports under Bitcoin, Ethereum, Solana, Polygon, Hedera, Binance Smart Chain, and Tron. Reports can be upvoted and downvoted. Other platform users can also leave comments to contribute additional information.

The announcement describes:

Reports on the same addresses or entities are consolidated and housed in a searchable database, which anyone can use to proactively check addresses or projects before engaging with them.

At the time of writing, there are 624 reports showing on the platform, including over 100 scams related to Ukraine’s crypto fundraising campaigns.

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Chainabuse explained that it does not file reports with law enforcement on behalf of users, emphasizing that the purpose of filing a report is primarily to alert others to the scam. However, the platform’s FAQ page explains:

Filing a report on Chainabuse may help surface multiple victims of the same scam and provides victims the ability to opt in to contact from law enforcement.

“We encourage all victims of cryptocurrency exploits to consider filing a report with the FBI’s IC3, Europol or the relevant law enforcement agency in their jurisdiction,” the Chainabuse team noted.

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Aave, Binance, Chainabuse bitcoin, Chainabuse crypto, Chainabuse cryptocurrency, Circle, Civic, Crypto Scams, report crypto scams, Scam, scam reporting platform, Solana, TRM labs, tron

What do you think of Chainabuse and will you be using it? Let us know in the comments section below.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Binance’s CZ clears the air: His decision to trade LUNA despite collapse and more

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Binance’s CZ clears the air: His decision to trade LUNA despite collapse and more

The mammoth crypto crash caused by the Terra (LUNA) fiasco left different opinions from various people in the crypto community. Binance boss ChangPeng Zhao (CZ) in a wide-ranging AMA on Reddit and answered a variety of questions.

Thanks for all your questions. Answered as many as I could.

Seems @reddit has taken the AMA thread down. Working to get it back so you can see my answers.

— CZ 🔶 Binance (@cz_binance) May 21, 2022

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Questions included Binance’s decision to trade LUNA despite its collapse, and other such related doubts.

Answers revealed

CZ Reddit responded: Why Binance once said UST is safe; will participate in the rebuild of Luna; will Binance be counterparty; what risks does BUSD have; is BSC too centralized; what is the value of Web3.0; How has life changed since the richest man?https://t.co/ILawvaVKik

— Wu Blockchain (@WuBlockchain) May 22, 2022

The UST stablecoin lost its USD peg while LUNA shed off over 95% of its value. Following this unfortunate event, Binance’s CEO has been vocal about it. Binance resumed the trading of LUNA after the validators had forced the network to halt.

“We suspended trading briefly when the validators paused the blockchain, even that caused a lot of complaints,” he wrote. “But I believe our action forced the validators to resume the network within a couple of hours.”

Despite such a backlash, one thing remains – the overarching lack of bias in markets. CZ shared a similar narrative.

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“No one is forcing anyone to buy just because trading is on. High-risk tolerance buyers are willing to take over from sellers. The marketplace is neutral.”

Binance, the largest exchange had staked UST in Anchor protocol to generate yield for users. CZ confirmed the same in the post.

“Yes, there were some, as part of the Earn program. These programs are accompanied by user education and extensive disclaimers – we are transparent about how this works, and the risks associated,” he added.

Earlier on, the Binance CEO had sent out a Twitter thread that detailed the organization’s decision to suspend LUNA trading on its platform. CZ also expressed his displeasure with how the Terra team handled the crash, saying that the team wasn’t responsive despite Binance trying to reach out to help.

In addition, the executive even raised concerns about the planned fork aimed to revive the Terra network. He asserted:

“The most stupid design flaw is thinking that minting more of an asset will increase its total value (market cap). Printing money does not create value; it just dilutes existing holders. Exponentially minting LUNA made the problem a lot worse.

Whoever designed this should have their head checked.”

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CZ isn’t the only one opposing the fork. The majority of the Terra community voted against it during preliminary voting.

With or without you…

Well, despite the growing frustration, the Terra network did showcase some reviving vitals. In the past 24 hours, prices of some tokens in the Terra ecosystem increased significantly. The current price of LUNA is 0.00016, an increase of 46.7%, the current price of UST is 0.07, an increase of 20.9%, and the current price of ANC is 0.14, an increase of 76.2%.

Fair to say, whatever may come and go, the burning goes for ever.

pic.twitter.com/URxLKcMrRa

— guesgous2 (@guesgous2) May 22, 2022

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$73.7 billion

Bitcoin Held On Trading Platforms Continues To Drop Lower, Over 68% Of The Total Held By 5 Exchanges

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Bitcoin Held On Trading Platforms Continues To Drop Lower, Over 68% Of The Total Held By 5 Exchanges

Amid the market carnage tied to Terra’s recent fallout, bitcoin sent to exchanges saw a brief spike on May 7, jumping more than 2% higher from 2.481 million to 2.532 million bitcoin. Despite the recent increase of bitcoin sent to trading platforms, the number of bitcoins on exchanges today remains lower than ever before.

Bitcoin Continues to be Taken Off Exchanges

Bitcoin (BTC) continues to be removed from centralized cryptocurrency exchanges as the number is much lower than the lows that were recorded on November 15, 2020. 248 days earlier, on March 12, 2020, the day after the infamous ‘Black Thursday,’ there were just over 3 million bitcoin held on centralized digital currency trading platforms.

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During the course of that time frame, the number of BTC held on exchanges dropped 15.86% on March 12 from 3 million BTC to 2.524 BTC on November 15, 2020. In more recent times, the number of BTC held on exchanges has been lower and in May the metric hit two significant lows.

May 22, 2022, exchange reserves stemming from cryptoquant.com data sets.

First on May 2, 2022, cryptoquant.com data shows there was 2.481 million BTC held on exchanges. The 2.481 million bitcoin was 1.70% lower than the number of BTC held on November 15, 2020. However, amid the Terra blockchain fallout and the terrausd (UST) de-pegging event, there was a brief spike of BTC deposits sent to exchanges.

After the low on May 2, there was a 2% increase in BTC deposits sent to centralized crypto exchanges. But that metric changed real quick as the 2.532 million bitcoin high on May 7, dropped over the course of the following week down 2.21% lower to 2.476 million BTC.

Out of $73 Billion in Bitcoin Held on Trading Platforms, 5 Exchanges Hold Over $50 Billion

At the time of writing, there’s 2.503 million bitcoin worth $73.7 billion held on digital currency trading platforms. Data provided by Bituniverse’s Exchange Transparent Balance Rank (ETBR) indicates Coinbase holds roughly 34% of the bitcoin held on exchanges. The ETBR list shows that Coinbase holds 853,530 bitcoin on the trading platform which is valued at roughly $25.14 billion using current BTC exchange rates.

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13.58% of the 2.503 million bitcoin kept on exchanges is held by Binance. Binance is the second-largest exchange, in terms of BTC holdings, as it currently controls a stash of 340,410 BTC worth roughly $10 billion.

Okex commands the third-largest position, in terms of BTC holdings, as the company currently holds 266,530 BTC, or 10.62% of the aggregate total. Huobi Global commands the fourth largest position today, with 160,950 bitcoin held on the platform. Huobi’s BTC stash equates to 6.39% of the entire 2.503 million bitcoin held by exchanges.

The crypto exchange Kraken is the fifth largest BTC holder with 102,900 bitcoin held or 4.07%. Between the top five exchanges, as far as BTC reserves held is concerned, the group of trading platforms holds 68.66% of the 2.503 million bitcoin.

The five exchanges command 1.724 million BTC worth $50.7 billion out of the aggregate of 2.503 million worth $73.7 billion. While there’s a lot less BTC held on exchanges, the number of bitcoin held by these trading platforms is largely concentrated on Coinbase, Binance, Okex, Huobi, and Kraken.

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$73.7 billion, 5 exchanges, Binance, Bitcoin, Bitcoin (BTC), bitcoin held, BTC, BTC deposits, BTC held, Centralized Exchanges, Coinbase, Coinbase 34%, cryptoquant.com, Exchanges, Huobi, Kraken, Okex, Terrausd (UST), Trading Platforms

What do you think about the amount of BTC kept on centralized exchanges? What do you think about the 68% held on five crypto trading platforms? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, cryptoquant.com data,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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