Binance suspends LUNA and UST trading due to issues with the Terra blockchain

Global cryptocurrency exchange Binance has suspended trading of pairs of Terra ecosystem cryptocurrencies, LUNA and TerraUSD (UST), on its platform following the algorithmic stablecoin’s major crash.

Binance confirmed the move on May 13, suspending spot trading for trading pairs LUNA/BUSD and UST/BUSD. It is not clear when the payouts for LUNA and UST will resume as the crypto exchange merely stated that it will wait for the Terra Network issues to be resolved.

It’s the latest move by the world’s largest cryptocurrency exchange by trading volume, following one of the most significant black swan events since the launch of Bitcoin (BTC) in 2009.

Binance Futures delisted coin-margined LUNA perpetual contracts on Thursday amid plans to bail out the stalled LUNA and UST. Terra blockchain validators were forced to take the network offline on May 12 to contain potential governance attacks following the crash of the network’s LUNA token.

Related: Untethered: Here’s everything you need to know about TerraUSD, Tether, and other stablecoins

Terra’s LUNA and its algorithmic stablecoin, Terra USD, suffered a dramatic crash on May 10 as UST lost its $1 peg. The system was designed to automatically maintain its peg to the US dollar – with failure leading to a systematic devaluation of UST while LUNA tokens were minted at an unprecedented rate.

The crash was catastrophic as LUNA’s value dropped by 95% in space in a matter of days. Terra founder Do Kwon released a short-term roadmap to try to revitalize the ecosystem. The proposal involved burning $1.4 billion and staking 240 million LUNA tokens to stem the depreciation of the $1 peg.

This article is under development and will be updated as new information becomes available.