The crypto market had experienced another “red” week. This is not the first and might not be the last for veteran investors and traders. However, this is a time for panic with regular back-thoughts for new and average investors if you made the right crypto investment decisions.
The recent decline in price saw Bitcoin go from above $38K to below $26k. One of the reasons for the sharp price decrease was due to a scheme that saw the price of Luna fall drastically. This scheme saw the Luna token lose 99 percent of its value. Luna is linked to the TerraUSD (UST), a stablecoin pegged on the US dollar.
UST decoupled from the US dollar earlier this week; this saw the price of Luna plummet to a new low. This saw many leading crypto exchanges suspend temporary withdrawals on Luna. However, crypto.com never halted the withdrawal and deposit of Luna even after the sharp drop to $2.
The current state of Luna on Crypto.com
While Crypto.com never suspended the deposit and withdrawal of Luna during the price drop, the crypto exchange was forced to stop all transactions on the Terra network on May 13. The Cronos network experienced a glitch that altered the price of Luna token on the exchange. Investors on the crypto.com app were able to sell Luna for above the market price.
The glitch listed the price of Luna on the Crypto.com app as 56 cents, while the market price on the exchange was around 2 cents. To combat the effect of the glitch, crypto.com suspended all Luna transactions for both its DeFi and App. Users’ account that benefited from the glitch was also temporarily limited to reverse the profit made on Luna trades.
The network suspension was only for a few hours, and Terra network transactions resumed on the network. However, all users account have been restored. Also, Luna has been delisted from the exchange.
What is the state of UST on Crypto.com?
While the rave around the market dip is yet to die down, many investors on the Cronos exchange are worried that the UST price drop will affect the exchange. Over the course of the night, Coinbase’s share price fell 15.6 percent after it reported net losses of $430 million (£348 million), far worse than analysts expected.
In a tweet by Crypto.com’s C.E.O. Kris, he stated that “UST was never listed on crypto.com and the platform never participated in Anchor yield farming” after a private user of the exchange reached out to him.