CEO says he is ‘very disappointed’ with how the stablecoin creators handled the massive collapse
CEO Changpeng Zhao said an “exponential amount” of new luna coins were minted because of flaws in the design of the Terra protocol.TerraUSD traded well below its $1 peg on Friday and luna crashed to a zero value.
Binance on Friday halted trading of the algorithmic stablecoin TerraUSD and its related luna coin following price collapses that prompted administrators behind the digital assets to turn off their network.
Theworld’s largest cryptocurrency exchange said in a notification that spot trading for the LUNA/BUSD and UST/BUSD trading pairs would be suspended Friday morning and that withdrawals for the coins will open when the Terra network becomes stable.
The moves come after a plunge in the value of the coins that began last weekend. TerraUSD lost its peg to the US dollar and sister coin luna eventually crashed to zero just five weeks after hitting a market cap of $41 billion, according to CoinGecko data. TerraUSD, or UST, was trading at around $0.09 on Friday.