- Binary Futures will execute automatic settlements and delist the Coin-Margined LUNA perpetual contracts.
- The USDT-Margined LUNA Perpetual Contracts’ leverage and margin levels will be adjusted.
- All existing positions will remain the same. Each tier’s maximum leverage and beginning margin rate have been changed.
In an official statement, Binance Futures announced the currency-marginalized LUNA perpetual contract would be settled automatically on May 12, 2022 (UTC) and delisted. The USDT-Margined LUNA Perpetual Contracts’ leverage and margin levels will be adjusted. All current positions will be kept unchanged. Each tier’s maximum leverage and starting margin rate have been changed.
Users should close all open positions before the contract is delisted to avoid automatic settlement. Binance Futures will also change the leverage and margin levels for USDT Margined LUNA perpetual futures on May 12, 2022.
The cryptocurrency market has been exceptionally turbulent in recent days, with TerraUSD (UST), one of the (supposed to be) key stablecoins, depegged from its $1 value and falling as much as 70% to 29 cents this morning.
Terra (LUNA) dropped from $83.04 on May 6, 2022, to $9.45 on May 11, 2022. LUNA investors have seen their wealth reduced by more than 88% in just five days. TerraUSD (UST), Terra’s crypto Blockchain algorithmic stablecoin, lost its 1:1 relationship to the dollar and now trades at $0.6131.
Terra (LUNA) was one of the top ten cryptocurrencies by market capitalization before this incident, and TerraUSD (UST) was the world’s largest decentralized crypto Stablecoin.
Between midnight on May 7 and early morning on May 8, crypto whales began selling around 285 million UST simultaneously on Curve, Binance, Anchor, and other platforms. Simultaneously, they began to short the Luna cryptocurrency.
UST and Luna are linked by an algorithm program, which resulted in a delay of the balance due to the heavy selling and shorting. UST ended the day losing its 1:1 ratio and trading at $0.98, while Luna fell 6% to $76.51.
On May 9, the Luna cryptocurrency had lost 60% of its value and was trading at $45 per unit. TerraUSD likewise failed to sustain its 1:1 ratio and fell further. Last week, the LFG foundation purchased $1.5 billion worth of Bitcoin.
Do Kwon, the founder of Terraform Labs (TFL) released an update in the hopes of righting the ship. Terraform Labs is the company behind UST, cryptocurrency Terra (LUNA), and Luna Foundation Guard (LFG),
“I understand the last 72 hours have been extremely tough on all of you — know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this,” Kwon said. “Together.”
Binance’s announcement came shortly after KuCoin Futures announced that it would update the tick size (i.e. the minimum change in price) of the LUNA perpetual contract. As announced on the firm’s official website, cancellations were allowed at 18:25:00 on May 11, 2022 (UTC).
Binance cryptocurrency exchange was recently all over the news as it achieved a huge milestone. Binance France has been registered as a Digital Asset Service Provider (DASP) by the Autorité des marchés financiers (AMF). Binance has achieved its first DASP in Europe as part of our commitment to being a compliance-first exchange.