Binance delisted margin LUNA perpetual contracts

This came after the token rate fell by more than 98%

12.05.2022 - 10:05

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What’s new? Cryptocurrency exchange Binance has announced the delisting of COIN-Margin perpetual contracts for Terra’s (LUNA) token. In addition, the leverage tiers for the USDT-Margin perpetual contracts have also been changed. The platform announced this on its blog.

Binance’s blog post

What is known about the innovations? The delisting of COIN-Margin perpetual contracts took place on May 12 at 08:00 UTC. Users were advised to close all open positions before the delisting time to avoid automatic settlement. In addition, Binance has updated the leverage tiers for the USDT-Margin perpetual contracts. The max leverage for such trades is set at 8x tier.

The platform stresses that it reserves the right to further change the max leverage and margin tiers for LUNA contracts without further notice. As of May 12, 12:15 Moscow time, the LUNA rate is $0,055, the drop per day exceeded 98,8%.

What is COIN-Margin? It is a type of perpetual contract whose value is determined by one of the cryptocurrencies available on the platform. With such contracts, one can purchase a cryptocurrency without directly having to own it.

What is USDT-Margin? It is a linear futures contract that is quoted and settled in USDT, a stablecoin pegged to the US dollar.

What events happened before? On May 11, the Korean Bithumb exchange reported the potential delisting of the LUNA token. Due to the asset’s strong price fluctuations, it was given the investment warning status. The platform’s representatives reminded customers that they regularly analyze the proposed assets in terms of meeting their own listing criteria.

On May 10, Binance temporarily suspended withdrawals of the TerraUSD (UST) stablecoin and its securing token LUNA. The decision was taken due to “a high volume of pending withdrawal transactions” and “network slowness and congestion.”

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