Bithumb considers delisting the LUNA token

The exchange argued its decision with strong fluctuations in the asset price

11.05.2022 - 14:35

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What’s new? Korean Bithumb exchange has announced the potential delisting of the Terra (LUNA) token. The notification to users was published on the exchange’s website. In it, the platform’s representatives reminded customers that they regularly analyze the proposed assets in terms of meeting their own listing criteria.

Warning on the Bithumb website

What does the warning say? The exchange’s representatives announced the decision to assign the investment warning status to digital assets.

“Due to the strong fluctuations in the price of the digital asset LUNA because of the volatility of the dollar peg of the algorithmic stablecoin of the Terra project, it is designated as an object of investment warning to protect investors.”

As of 18.00 Moscow time, the LUNA token is trading at $2,23 and its market capitalization is $2,7 billion, according to Binance.

What is known about Bithumb? The platform was founded in South Korea in 2013, with around 300 different coins available for trading. The daily trading volume as of May 11 is $1,5 billion, according to CoinMarketCap.

What events happened before? On May 10, the Binance cryptocurrency exchange temporarily suspended the withdrawal of the Terra (LUNA) token and TerraUSD (UST) stablecoin. This decision was taken due to “a high volume of pending withdrawal transactions” and “network slowness and congestion.” Withdrawals on Binance have already resumed.

On May 11, the UST rate had been declining to $0,22. Earlier, it lost its peg to the dollar. The Block’s expert Larry Cermak said that plans by the non-profit Luna Foundation Guard (LFG) to raise an additional $1 billion to support the UST stablecoin had failed.

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