Michael Abetz
After earlier delisting Terra (LUNA) from its perpetual futures trading pairs, Binance exchange has suspended all spot LUNA trading.
Earlier today other crypto exchanges froze spot trading of LUNA against Bitcoin, Tether (USDT) or fiat currency, some stating it was to protect traders.
Terra (LUNA) Price -100%
On the USDT pair the LUNA price hit 0.00004. The order books were still thin at 0.00001, 0.00002 and 0.00003 USDT before that pair was frozen.
The Binance 24 hour change percentage can only display two decimal places, and showed minus 100% when the LUNA price reached that area.
The 24 hour high was 1.38 so that part of the Luna drop was 99.997%. It kept falling even further however even after Binance decided to suspend LUNA / USDT.
The LUNA / BUSD trading pair remains functioning and the 24 hour low on that pair is 0.00000112.
LUNA/BUSD
Binance USD (BUSD) is the stable coin set up by Binance and is a competitor to TerraUSD (UST).
Crypto price tracking site Coinmarketcap is no longer displaying the correct LUNA price, it has crashed so low. The circulating supply of LUNA tokens has experienced severe inflation from 350 million LUNA coins to 6.5 trillion.
LUNA Hits Zero
The 2022 LUNA all time high was $119.5 reached on April 5th 2022, so the LUNA price had already crashed 99% to fall to the one dollar range.
Some notable traders such as KSI Crypto (@ksicrypto) that bought the dip experienced another 99% crash to one cent, followed by another 99% drop to a tenth of a cent, and finally another 99% drop to 0.00000112.
It requires opening the Binance app on mobile to display the correct LUNA price as the desktop site doesn’t have enough decimal places for LUNA.
At the bottom $100 could buy you 90 million LUNA coins – for those buying LUNA with Binance USD – when a few weeks ago it would have bought you only one LUNA token.
Some people are still buying LUNA with BUSD and it has put in a 4x bounce from that low (update – now over 65x).
Crypto trader @bitbitcrypto posted a LUNA supply graph suggesting the LUNA inflation rate is flattening, which could explain the strong bounce on the LUNA/BUSD pair since the early hours of May 13th on Binance.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
When Will Binance Relist LUNA
Binance should make an announcement on their official Twitter soon, and we’ll make a new post on this site when that happens. The LUNA price is now back above the point they decided they would delist LUNA – 0.00005.
Your LUNA token holdings will not be lost, they will be stored on Binance and reimbursed to another LUNA wallet you own, in the unlikely event they don’t relist LUNA.
Update – Binance are relisting LUNA at 2:00pm UTC, May 13 2022.
Should You Buy LUNA Now
This shows the risks of ‘catching a falling knife’ especially during a black swan event with hyperinflation, and on leverage.
Open interest was still high during the Luna crash before Binance Futures decided to delist margin trading – a measure of how many leveraged long and short positions were open. Many LUNA long positions will have been liquidated or closed at a loss.
Conservative traders ‘wait for confirmation’ and a strong bounce that holds – for example ApeCoin (APE) just closed a +36% daily candle after bouncing. LUNA didn’t close a green daily candle since May 4th when it was $82. May 13th will likely close green.
APE is listed at beginner friendly crypto platform eToro which doesn’t offer leverage and closed all LUNA trading 15 hours before Binance. Some traders did not like that decision however it protected investors who weren’t aware of the inflation curve from a much lower drop in the LUNA price.
Coinbase also doesn’t support leverage. It didn’t list LUNA but has Wrapped Luna (WLUNA).
Update – eToro relisted LUNA on May 19th, and Coinbase will delist WLUNA on May 27th.
LUNA Bottom
Unless you’re an experienced trader the best LUNA trading strategy could be to wait for updates and progress in Terraform Labs’ recovery plan, exchanges to re-open LUNA trading, and a bottom to form.
The bottom may have been 0.00000112 on Binance as LUNA has bounced 65x since then. Bitcoin also moved back above $30,000.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Read More:
- Best Cryptocurrency to Invest in 2023 – Which is the Best Crypto to Buy Now?
- Best Long Term Crypto Investments
- Best Crypto Winter Tokens
This article was written for Business 2 Community by Michael Abetz.
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what is that meaning ???……..luna cannot be revived ???……..we lost all money in there ???…..
Your LUNA holdings still exist, they’ll be accessible when Binance restores LUNA trading.
Edit – they have relisted LUNA today
Thanks for this. Please what happens when LUNA/BUSD Spot becomes zero. Will be deleted from Binance? Can I ever have access to it again?
You won’t ever lose your LUNA holdings, Binance would contact you and send them to another wallet you own
It probably won’t hit zero on there now since it bounced a lot, but even if it did Binance would sent you the tokens
Can Binance relist Luna/USDT yet?
They haven’t announced anything yet but keep checking their Twitter they should soon
Edit – they just announced they’ll relist LUNA today (May 13th)
Also at this price its value is superior to Shiba Inu…
Good point Shiba Inu has not been doing much lately