Due To LUNA Collapse, Binance Suspends LUNA/USDT Perpetual Contract

Binance suspended LUNA's perpetual contract. (Pixabay)

JAKARTA – The world's largest crypto marketplace, Binance, announced the suspension of the LUNA/USDT coin pair's perpetual contracts. This move follows the collapse of the coin by more than 99 percent.

The crypto market is currently experiencing a sharp downturn, but none is more severe than the coin in the Terra ecosystem, LUNA. The token collapsed so quickly that Binance moved against it. This move comes when LUNA plunged more than 99 percent and cost many investors millions of US dollars.

“As previously mentioned, Binance Futures will auto-settle on $LUNA USDT and then clear the Futures contract on May 12, 2022 15:30 UTC,” wrote Binance's Twitter social media account (@binance) on May 12.

However, Binance's efforts were not enough. LUNA is still falling with no sign of stopping. Not long ago, Binance also announced that it would be removing the BUSD margin pair from LUNA. It's basically a goodbye to the cryptocurrency.

Binance's efforts are not an instantaneous move. The day before, May 11th to be exact, Binance reduced the maximum leverage on LUNA futures to 8x after a huge wave of liquidation due to overly high positions.

Yesterday, Binance CEO Changpeng Zhao warned via his official Twitter account that it is necessary to respect the market when trading as it is a “new market” with new stablecoins. “When they are hot, they are all angry. [But] When they fall, it can become a vicious circle,” Zhao's message related to everything that happened with UST.

“Many have asked me about the market today. We need to respect the market, with a degree of prudence as well. It goes up and down in cycles. And especially the fact that it doesn't always make sense," wrote Zhao's Twitter account (@cz_binance).