Terra’s stablecoin offering, UST, saw its market value fall below $1. LUNA’s prices also experienced a sharp drop due to a substantial selloff.
While the crypto community tries to figure out Terra’s ongoing pegging/de-pegging fiasco with respect to TerraUSD (UST), the major crypto exchange Binance announced that withdrawals for Terra ( and LUNA were suspended until Tuesday.
The market value for UST, Terra’s stablecoin offering fell to below $1.00 due to a major selloff . Cointelegraph reported that the BTC/UST trading pairs on Binance reached higher than $42,000 while other Bitcoin dollar markets struggled for $30,000
Binance temporarily suspended withdrawals of LUNA tokens and UST tokens in response to the uncertainty in the Terra ecosystem.
Binance claims that the high volume of pending UST transaction is due to network congestion and slowness. Binance acknowledged the inconvenience that investors may experience, but said:
Withdrawals on Terra Network $LUNA temporarily suspended.https://t.co/hIGrAEzOwD
— Binance (@binance) May 10, 2022
“Binance will reopen withdrawals of these tokens when we deem the network stable and the volume has decreased.” We won’t notify users with any further announcements.”
However, Crypto Twitter reacted to Binance’s announcement by questioning whether the crypto community believes in decentralization. They compared the move to traditional finance’s centralized approach.
Users around the world are now barred from withdrawing funds. The community reiterated the expression “not your keys, not your coins” and highlighted Binance’s funds suspension as one of many cons to a central crypto exchange.
Some members of the community supported this move, stating that Binance CEO Changpeng ‘CZ’ Zhao saved many investors from liquidation by selling a stablecoin for $0.70.
Terra is still trying to find a permanent solution for the falling value of UST. However, many crypto entrepreneurs, including Polygon cofounder Sandeep Nailwal, showed support for Terraform Labs co-founder and CEO, Do Kwon.
Based on market capitalization, UST flipped Binance USD(BUSD) on April 18. This made it the third-largest stablecoin after Tether ( USDT and USD Coin ( USDC).
Based on CoinGecko data, Cointelegraph’s report showed that UST had seen its total market capitalization rise 15% in the past 30 days and now stands at approximately $17.5 billion. This was slightly more than BUSD’s $17.46 billion market cap.
BUSD has regained its position as 9th largest cryptocurrency in terms market capitalization due to recent turmoil in Terra. UST is currently ranked 10th on the list, with a market capitalization of approximately $16.5 billion.
