Crypto exchange giant Coinbase is announcing plans to suspend trading of TerraUSD (UST) and Wrapped Luna (WLUNA) on all levels of the platform.
Coinbase Assets recently made the announcement on Twitter that, in light of extreme volatility within the Terra (LUNA) ecosystem, UST and WLUNA trading will be suspended in two weeks.
In light of recent volatility involving Terra ecosystem assets UST and LUNA, Coinbase will suspend trading in UST & WLUNA on May 27, 2022 on or around 12pm ET on https://t.co/Zkd27RUMRo, Coinbase Pro, and Coinbase Exchange.
— Coinbase Assets (@CoinbaseAssets) May 13, 2022
Coinbase also assures customers the suspensions will not affect users’ abilities to access UST and WLUNA already within their wallets.
“The trading suspension will not affect customers’ access to UST & WLUNA wallets which will remain available for deposit and withdrawal functionality after the trading suspension…
We will continue to monitor developments related to UST & WLUNA and update our customers as more information becomes available.”
TerraUSD is a LUNA-based stablecoin designed to maintain a 1:1 price peg with the US dollar (USD). UST has crashed hard this week and is currently trading for $0.11, down 89% from its $1 peg. UST’s unexpected crash has brought down Terra with it, dropping the blockchain by over 99% in the last week. Wrapped LUNA token is designed to maintain a 1:1 peg with Terra and has also crashed as a result.
Terra, a top ten crypto by market cap just last week, has now dropped out of the top 100.
As Coinbase prepares to suspend LUNA trading in two weeks, Binance suspended LUNA and UST trading with Binance USD (BUSD) earlier today, only to resume the trading pair later in the day. Though Binance users can trade LUNA and UST with BUSD, trading with Tether (USDT) has been suspended on the platform.