eToro resumes Terra’s LUNA trading as new token surges 40%
Two weeks after announcing the shutdown of Terra’s Luna from trading on its platform, eToro lifted the suspension and allowed trading again.
Similar to how they announced the suspension, Israeli social trading network advised traders to be cautious as there’s still doubts over its security and certainty. Unwilling to give room to criticism, eToro advocated personal research to be carried out before acting on the announcement.
After a spectacular crash, Terra’s newly minted token (LUNA) rallied by nearly 40 percent yesterday after it was listed on major cryptocurrency exchange Binance. Backers of Terra 2.0 voted to revive the failed token but without its algorithmic stablecoin UST, which essentially caused the steep fall of the cryptocurrency two weeks ago.
The price of Terra’s token, which ranked among the top 10 most valuable cryptocurrencies, has been all but wiped out in the space of a few days. The meltdown has shaken confidence in other stablecoins, and the broader cryptocurrency markets miserably collapsed.
LUNA tanked to virtually zero a couple of hours ago after having peaked close to $120 last month, as per data from CoinMarketCap. Additionally, its sister stablecoin TerraUSD, or UST, lost its dollar peg before the collapse.
As a result, major cryptocurrency venues were distancing themselves from Terra ecosystem tokens such as LUNA, anchor (ANC) and mirror (MIR).
Binance terminated spot trading for the native token of Terra blockchain and TerraUSD against its own stablecoin BUSD, adding to earlier cancellations of the futures trading and borrowing functions. Founder and CEO Changpeng Zhao then tweeted that trading in LUNA has since been resumed. In explaining the reasons for Binance’s initial suspension, CZ said “An exponential amount of new LUNA was minted due to flaws in the design of the Terra protocol. Their validators have suspended their entire network, resulting in no deposits or withdrawals possible to or from any exchange.”
Binance CEO further warned that some of our users, unaware of the large amounts of newly minted LUNA outside the exchange, started to buy the token again, without understanding that as soon as deposits are allowed, the price will likely crash further.
Other crypto exchanges including Huobi, FTX, Crypto.com, KuCoin, OKX and CoinDCX took similar measures.