After the recent collapse of the Terra ecosystem this week, VanEck and 21Shares have decided to suspend the creation and repurchase of shares in Terra ETPs. Meanwhile, a move towards Terra came from the FTX and Crypto.com exchange. Here are the details…
VanEck and 21Shares suspend Terra ETPs
Terra’s native cryptocurrency unit LUNA is supposed to help keep the UST stablecoin stable in USD. However, as UST continued to diverge from the dollar, LUNA price dropped as low as $0. Ultimately, Terraform Labs had to suspend the now restarted Terra Blockchain for a while. Hany Rashwan, CEO and co-founder of 21Shares, a crypto ETP provider, said:
We will continue to closely monitor this rapidly evolving situation on the underlying. The Luna network is currently generating blocks intermittently and inconsistently and cannot function normally. Therefore, operations can be performed in an intermittent environment.
On the other hand, VanEck noted that it will take a similar stance on the issue. VanEck’s team stated that there are problems and risks for Terra, where the low value of Luna and the network are stalled. VanEck has announced that it is suspending its Terra ETNs.
delist decision from Crypto.com and FTX
In a recent update to customers, the exchange announced on May 12 between 12:40 and 13:39 (UTC) announced plans to reverse all launched Luna transactions. Apparently, these transactions were offered at an incorrect price. Crypto.com became one of the exchanges that suspended trading Luna. While some people may not be happy with this move, especially if they are in profit, Crypto.com is trying to make up for it with a $10 CRO deposited into their account.
Another crypto exchange, FTX, is also joining others in suspending Luna trading on its platform. FTX completely delists the LUNA. In announcing this move, the exchange hinted that all LUNA trading activity would be suspended at 19:45 on May 13. All LUNA-PERP trigger orders have been cancelled, and ongoing orders will expire within 1 hour at the corresponding index prices.
