The major cryptocurrency exchange said on Thursday that it will delist the pair if the price went below 0.005 USDT, which has already occurred.
Binance will delist LUNA/USDT when the price falls below 0.005NEWS.
Binance, a major cryptocurrency exchange, has said it would delist its Tether (USDT)-margined Terra (LUNA) futures contracts due to a price decline of more than 99 percent.
In a blog post published on Thursday, Binance said that it would take "precautionary actions" regarding its LUNA/USDT perpetual contracts, planning to delist the pair if its price falls below 0.005 USDT. On Wednesday, the exchange modified the leverage and margin levels for LUNA-linked contracts, setting the maximum leverage for holdings under 50,000 at eight times.
In addition, Binance said that it will issue LUNA futures contracts backed by Binance USD (BUSD) on Thursday, ostensibly as an alternative investment vehicle should it delist LUNA/USDT. According to the exchange, "slowness and congestion" have resulted in a significant number of pending Terra network withdrawal transactions.
Following a massive sell-off, the LUNA price has dropped more than 99 percent in the last twenty-four hours, hitting $0.004 at the time of publishing. Numerous tokens on the crypto market have been hit by market volatility, with Bitcoin (BTC) falling below $27,000 to a 16-month low and Ether (ETH) falling below $2,000 for the first price since July 2021.
LUNA/USDT price fluctuation.
In the midst of high market volatility, a number of exchanges have addressed social media concerns about customer money. Wednesday, Celsius Network CEO Alex Mashinsky tweeted that the site "has not suffered any big losses and all money are secure." Similarly, Coinbase CEO Brian Armstrong assured exchange customers that there is "no danger of insolvency" for the firm.
Do Kwon, co-founder of Terra, alluded to a "rescue strategy" for TerraUSD (UST) on Tuesday, adding later that he backed community requests to raise the algorithmic stablecoin's minting capacity. However, Kwon has not given any updates since LUNA's price was reduced further.