Crypto exchanges took the bold step of relisting LUNA after it looks like the doom period for the token has passed over. When the token started posting decline runs due to the incident that occurred, crypto exchanges moved to delist it.
Most of these exchanges said they were protecting their users from the highly volatile market. The market posed a very high risk than they could accommodate on their platforms.
Binance was one of the exchanges that took the lead in this regard. Changpeng Zhao released a video telling users why they had to go with the choice after the delisting. In his explanation, Zhao mentioned that a massive amount of LUNA tokens are in the market due to the ills in the design of the token.
The issue with the price decline occurred via a flaw in the UST stablecoin based on the Terra network. According to details, a massive amount of the token was sold for cash on two crypto exchanges, leading to the untimely crash.
Crypto.com followed in Binance’s shoes by delisting the token, citing the same reasons that Changpeng Zhao mentioned. Additionally, eToro took the bold step to delist the token. However, they have since relisted it.
However, eToro has issued warnings to its customer base on the unstable nature of the token. Analysts across the market have mentioned burning a fraction of the supply of the token. To help the token, the company in charge will have to burn nothing less than 65% of the entire supply of the token.
However, some exchanges chose not to delist the token even with the bout of decline run that it posted. One such exchange is FTX which saw its trading volume touch close to $445 million. Interestingly, FTX has sunk since then.
While LUNA saw a huge decline, the market sentiment played an integral part as Bitcoin and other tokens also saw massive bearish runs. Most of the top tokens posted two-digit losses during the crash period.