The world's largest cryptocurrency exchange, Crypto.com, announced on Twitter that deposits and withdrawals on the Terra network have been temporarily halted due to an abrupt price drop of 100% on the Luna and Stablecoin Trerra USD (UST).
Because of a technical issue on May 13, the LUNA price was 30-40x over the market price for roughly 59 minutes. Crypto.com instantly stopped users from trading after an internal tool discovered that the system was reporting bogus prices for Luna.
Through a Twitter thread, Crypto.com CEO Kris Marszalek gave specifics about bug concerns. that allows clients to benefit handsomely in the same way as Crypto does.
He mentioned that:
"The root cause was a combination of multiple external factors (tick size changes due to Luna death spiral, withdrawals & entire Luna chain stopping) together leading to price dislocations that should typically be caught by index pricing, but weren’t."
Luna Has Returned
Because the technical issue only affected the retail app and not the exchange, many users purchased things at wrong pricing, and some users took full advantage of the situation. As a goodwill gesture, Crypto.com offered affected investors $10 worth of its in-house cryptocurrency Cronos (CRO).
After a day of investigation into the LUNA trading tragedy, Marszalek announced all user accounts have been re-enabled.
Crypto.com has resumed Luna's deposit request, according to WatcherGuru.
LUNA has also been removed from almost all cryptocurrency exchanges worldwide. It all began on May 13 when a few exchanges momentarily halted LUNA trade. Binance has indicated that LUNA will be delisted if its price falls below $0.005. In the early hours of May 13th, LUNA plummeted below $0.005, prompting Binance to stop selling the cryptocurrency.
LUNA is presently trading at $0.00002309 on CoinMarketCap (CMC), down 26.66 percent in the last 24 hours, and the graphs have hit 100% of their all-time high at the time of writing.