Binance halts trading for Terra, delists LUNA and UST

The world’s largest crypto exchange Binance has delisted both LUNA and stablecoin UST.

The Terra ecosystem tokens were removed from both margin and spot markets at 12:40 am UTC today.

Binance had warned users about delisting the LUNA and Tether (USDT) trading pair if the price of LUNA fell below $0.005 on Thursday.

Earlier this week, Binance had also temporarily halted the withdrawals of UST and LUNA owing to network congestion caused by the high volume of pending withdrawals.

LUNA plummeted 99.97% yesterday and currently trades at $0.00005395 accordion to data from CoinMarketCap.

LUNA was designed to help stabilize UST at its dollar peg with a “mint-and-burn” mechanism. Users could swap $1 worth of LUNA for UST, and vice versa.

Each time LUNA is swapped for UST, that LUNA is also burned.

This week though, this mechanism came under immense pressure until UST began rapidly losing its dollar peg.

The arbitrage between UST and LUNA resulted in high sell pressure on LUNA accelerating the token crash.

The previously dollar-pegged UST is now trading at $0.17 today according to data from CoinMarketCap.