Following the rapid decline of LUNA triggered by UST’s depegging, Binance Futures has decided to delist token margin LUNA perpetual contracts.
LUNA Delisted?
South Korean stock market rallied after the sudden drop in LUNA. He made a statement regarding the decline in Upbit LUNA, which is the largest stock exchange in South Korea, and stated that they are closely following the developments. It was stated in the statement that the decision on whether to continue the support will be made after a detailed examination.
As the crypto community tries to circumvent the fiasco of keeping Terra’s stablecoin Terra USD (UST) indexed to the dollar, giant cryptocurrency exchange Binance has announced that withdrawals for LUNA and UST are suspended until further notice.
Advised users to close their positions immediately on all existing token margin LUNA perpetual contracts. It will be removed from the list as of May 12. Binance has also updated the leverage and margin tiers of LUNA perpetuals with USDT margins, reducing the maximum leverage from 21-25x to 8x.
Binance made the following statement;
“Due to current tick size restrictions for LUNAUSDT perpetual contracts, Binance Futures will take the following precautionary measures: If the price of LUNAUSDT contracts falls below 0.005 USDT, Binance will continue to delist contracts. More information will be shared soon, including the delisting period. LUNA futures contracts with BUSD margins use BUSD as collateral. Users can choose between 1-8x leverage. Users may use BUSD and/or USDT interchangeably as collateral for LUNA futures contracts with BUSD margin and USDT margin”.
What Does Delist Mean?
Delist is a word that means to remove from list. It is used when any asset listed on traditional exchanges and cryptocurrency trading platforms is traded.
When traditional exchanges or cryptocurrency trading platforms detect that the costs of the asset they list exceed the benefits it brings, they take the delist decision. Assets that remain below a certain price for a long time, cannot come of age, or whose volume has steadily decreased are delisted. Crypto assets, if removed from a trading platform, can be transferred to another platform or wallet where they are traded.
