Cryptocurrency Exchange

Scott Minerd says Bitcoin price will drop to $8K, but technical analysis says otherwise

BTC price could be poised for a big bounce despite Minerd’s prediction that price will drop to $8,000.

Bitcoin (BTC) is predicted to drop more than 70% to the $8,000 value area, according to comments by Guggenheim chief investment officer Scott Minerd. This is not the first time he has made a bearish call, and he has, in the past, made bullish calls as well. However, Minerd’s more recent calls have occurred just before major reversals.

It should be noted that Mr. Minerd, if inferred from previous comments, is a Bitcoin bull and has a long forecast for the biggest digital asset in the six-figure range. However, if traders and investors used his comments as a sentiment indicator for a market low, then other confirmatory data must be used.

Long term oscillators values support a bullish reversal

The weekly and monthly RSI (relative strength index) and composite index show that extremes have been met. These extremes do not predict or guarantee a reversal. Still, they warn bears that the momentum of further downside movement is likely to be severely limited or eliminated.

BTC/USD weekly relative strength index (RSI) (Coinbase) Source: TradingView

The weekly RSI remains in bull market conditions, despite it moving below both the oversold levels of 50 and 40 — until it hits 30, the bull market RSI settings remain. Currently, at 33, this weekly RSI level is the lowest since the week of December 10, 2018, and just below the March 2020 COVID-19 crash low of 33.48.

Likewise, the weekly composite index reading for Bitcoin is at an extreme. It is currently at the lowest level it has traded at since the week of February 8, 2018. The current level that the weekly composite index is at has historically been a strong indicator that a swing low is likely to develop.

BTC/USD weekly composite index (Coinbase) Source: TradingView

The black vertical lines identify the most recent historical lows in Bitcoin’s weekly composite index.

Chart patterns on oscillators can help identify upcoming reversals

The use of basic chart patterns like rectangles and triangles on a Japanese candlestick or American bar charts c is not limited to just the price chart. For example, the great analyst and trader Connie Brown (the creator of the composite index) impresses analysts and traders to pay attention to chart patterns in oscillators.

BTC/USD monthly (RSI) (Coinbase) Source: TradingView

The falling wedge pattern on the monthly RSI fulfills all the requirements to confirm that pattern: five touches of the trend lines. It should be noted that the monthly RSI for Bitcoin, like the weekly RSI, remains in bull market conditions, and the current RSI is just below the first oversold level of 50.

Another major development with Bitcon’s oscillators is the regular bullish divergence between the monthly RSI and the monthly composite index. The composite index, created by Connie Brown, essentially is the RSI with a momentum calculation — it catches moves that the RSI cannot.

Note the structure of the lines on the monthly RSI compared to the composite index. The RSI shows lower lows, but the composite index shows higher lows. That is a regular bullish divergence.

BTC/USD Monthly composite index (Coinbase) Source: TradingView

Regular bullish divergence is most often measured between price and an oscillator, but it can also be measured between two oscillators. Regular bullish divergence is a warning sign that the current downtrend will likely face a corrective move higher or the beginning of a new uptrend.

Bitcoin price action remains correlated to stocks

Due to the continued correlative behavior between Bitcoin and the broader cryptocurrency market to stocks, special attention should be given to this week, specifically Thursday (May 26, 2022).

Economists and Wall Street continued to sound off worries about growth. After Target’s (NYSE: TGT) dismal quarterly report last week, all eyes are on other big-name retailers announcing earnings on May 26: Macy’s (NYSE: M), Dollar Tree (NASDAQ: DLTR) and Dollar General (NYSE: DG) are all on deck May 26.

However, given that much of the stock market is below bear market levels, any negative news from retail stocks or the United States Federal Reserve is likely to be considered “priced in.” Volume into the tech-heavy NASDAQ (NASDAQ: QQQ) has increased, as have inflows to Bitcoin and the wider crypto market.

Thus, if stocks bounce, Bitcoin will bounce. The upside potential for Bitcoin will likely be limited to the critical psychological and 2022 volume point of control at $40,000.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Litecoin confidential transactions spook Korean exchanges

The two exchanges cited Korea’s Act on the Reporting and Use of Specific Financial Transaction Information, a law that requires crypto exchanges to put in place KYC and AML systems.

The recent privacy-focused MimbleWimble upgrade on the Litecoin (LTC) blockchain has prompted two of Korea’s largest crypto exchanges to issue investment warnings about the fifth-largest cryptocurrency.

Bithumb and Upbit, which together account for the majority of trading volume in South Korea, released statements on Monday advising investors about the risks associated with the privacy-enhancing upgrade. Litecoin’s use of privacy-focused technology Mimblewimble allows users to make “confidential transactions,” that allow them to send tokens while concealing transaction data, according to Bithumb. Upbit issued a similar statement.

The two exchanges cited Korea’s Act on the Reporting and Use of Specific Financial Transaction Information, a law that requires crypto exchanges to put in place Know Your Customer (KYC) and Anti-Money Laundering (AML) systems.

Korean exchanges have a history of delisting cryptocurrencies after making such warnings. The other two major South Korean exchanges, Korbit and Coinone, have not yet made any statements.

MimbleWimble upgrade concept was first proposed almost two and a half years ago. The new upgrade was released earlier this year after a majority of nodes approved the MimbleWimble (MWEB) update, and will be able to interact with new MWEB privacy features. It was completed at Litecoin’s block height of 2 million.

Related: Litecoin is finally launching its major Mimblewimble upgrade

The MimbleWimble Litecoin upgrade has been the cryptocurrency’s most eagerly anticipated update. MWEB not only adds new privacy features for LTC users but also incorporates blockchain key performance improvements. MWEB compresses unnecessary transaction data from the blocks, allowing for discreet transactions on the Litecoin blockchain.

Litecoin was created in 2011 as one of the earliest competitors to Bitcoin (BTC). According to CoinMarketCap, it’s the 18th most valuable cryptocurrency with a market cap of more than $5 billion.

Bearish head and shoulders pattern forces Ethereum traders to re-adjust their price targets

Traders say Ethereum needs a monthly close above $2,250 to regain bullish momentum, but a bearish technical analysis pattern on the weekly timeframe threatens to push ETH price to new lows first.

Crypto markets remain volatile and a handful of seasoned traders believe that the bearish trend will continue as long as stock markets are chasing new lows.

Most investors would agree that crypto is now in a bear market and the current price action for Bitcoin (BTC) and Ethereum (ETH) suggests that capitulation and consolidation are a ways away.

Data from Cointelegraph Markets Pro and TradingView shows that Ether still struggles to reclaim the $2,000 level as support and this zone has been a notable support and resistance since February 2021.

ETH/USDT 1-day chart. Source: TradingView

Ether needs a monthly close above $2,250

Insight into the major support level Ether needs to clear by the monthly close to regain a bullish outlook was touched on by market analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart indicating the area near $2,269 is a key level.

ETH/USD 3-day chart. Source: Twitter

Rekt Capital said,

“ETH is climbing closer and closer towards the key ~$2,250 level. The main question is whether that monthly level will flip into new resistance once reached.”

Traders target $1,650

The possibility of a breakdown from the current support level was outlined in the following chart posted by crypto trader and pseudonymous Twitter user Crypto Tony, who is “expecting another drop further into the OB” where they are looking to have some orders filled.

ETH/USDT 3-day chart. Source: Twitter

Crypto Tony said,

“This move will be needed to engineer liquidity to propel us into the corrective wave. From there we see how it goes.”

Related: ‘Huge testing milestone’ for Ethereum: Ropsten testnet Merge set for June 8

Ether’s head and shoulders structure is complete

A potentially bearish sign appeared with the completion of a head and shoulders pattern on the weekly chart, a point highlighted in the following chart posted by CryptoCharts.

ETH/USD 1-week chart. Source: Twitter

CryptoCharts said,

“With the recent sideways crypto market, we can clearly spot it out as if it’s a bounce or a breakout on the support highlighted. Here on the short-term timeframe, I will be keeping an eye closely to spot the breakout, or reversal breakout on the current support will lead the price towards the next support formed close to $1,300. Any bounce back will be continuing to rise toward $2,450.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

FTX US to launch stock trading against stablecoins

FTX Stocks will allow retail investors to fund their accounts with fiat-backed stablecoins like USD Coin via the FTX US crypto exchange.

Major cryptocurrency exchange FTX is moving into equity trading, with its United States-based subsidiary FTX US launching a stock trading platform.

West Realm Shires Services, the owner and operator of FTX US, announced on Thursday the upcoming launch of FTX Stocks, a stock trading service offered directly through the FTX US trading app.

The new stock trading platform will feature trading and investing in hundreds of U.S. exchange-listed shares, including common stocks and exchange-traded funds.

According to the announcement, FTX Stocks will be the first platform to ever allow retail investors to fund their accounts with fiat-backed stablecoins like USD Coin (USDC). The option is enabled via a partnership with the FTX US crypto exchange, providing an alternative option to default deposit methods in the U.S. dollar, including wire transfers, credit card deposits and others.

The FTX Stocks platform will be initially available in a private beta phase for select U.S. customers chosen from a waitlist. The service will also initially route all orders through Nasdaq to ensure transparent trade execution and fair pricing, the announcement notes.

“With the launch of FTX Stocks, we have created a single integrated platform for retail investors to easily trade crypto, NFTs and traditional stock offerings through a transparent and intuitive user interface,” FTX US president Brett Harrison said. He added that there is “clear market demand” for a new retail investment experience supporting “full order routing transparency” while not relying on payment for order flow.

Related: The Brazilian Stock Exchange will launch Bitcoin and Ethereum futures

The news comes shortly after FTX founder and CEO Sam Bankman-Fried criticized the efficiency of Bitcoin (BTC) as a payment network on Monday. He specifically expressed concerns over the Bitcoin network’s mining consensus, arguing that it’s not scalable enough to process millions of transactions.

The CEO has also been actively buying shares of major players in the industry, holding about $650 million in the stock of the crypto-friendly stock trading app Robinhood as of May 2022.

Socios fan tokens rally 40%+ after Chiliz rolls out mainnet upgrade and token burn plan

A new exchange listing, mainnet launch and competitive token burn mechanism led to a sharp rally in Socios fan tokens.

In times of high stress and market turmoil, sports entertainment has served as a valuable escape for people around the world as they get a chance to root for their favorite players and teams while briefly forgetting about the worries of the world. 

Amid the ongoing market volatility and falling crypto prices, sports fans have cause to rejoice as multiple fan tokens have bucked the downtrend on May 18 to post 40% plus gains.

Top 7 coins with the highest 24-hour price change. Source: Cointelegraph Markets Pro

Here’s a look at the recent developments that have helped propel Paris Saint-Germain (PSG), Juventus (JUV), FC Barcelona (BAR) and other fan tokens to the top of the charts on May 18.

Chiliz Testnet Phase 2

The biggest driver of momentum for fan tokens appears to be coming from new developments on the Chiliz protocol, which operates Socios, a blockchain-based sports entertainment platform.

On May 17, Chiliz revealed the launch of Jalapeno, the second phase of its Scoville testnet, which is part of the broader launch of the Chiliz mainnet.

A few of the new features to be tested in Phase 2 include the launch of PepperSwap, which will provide a decentralized exchange and fan token test surveys, which allow token holders to begin participating in surveys and governance votes on the protocol.

Eventually, users will be able to interact with the community of specific fan tokens and vote on developments that they would like to see for that club through fan token surveys, which is one of the features in which many investors were initially interested.

Fan tokens list at a new exchange

A new listing at BitPanda could be another reason why fan tokens rallied on May 18.

According to BitPanda’s Twitter, at least seven fan tokens listed on May 18.

Related: Exploiting sports fans through NFTs won’t lead to a W

Token burns reduce supply

Another factor providing a boost to fan token prices is the Chiliz Head2Head burn competition which burns a portion of the fan token circulating supply based on the results of live matches between clubs.

Based on this design, the Head2Head burn mechanism will affect the tokenomics of a project over time by helping to reduce the circulating supply of tokens, which has the potential to result in a price increase if demand stays elevated.

It also provides a way to see the performance of a team reflected in its token supply, with better performing teams seeing more of their token supply burned. If the Head2Head burn process proves effective, it could potentially increase the value of certain teams due to the reduced circulating supply.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine?

After an earthquake, there are always aftershocks. The collapse of UST could be a sign that other stablecoins are also critically flawed.

The past week has not been an easy one. After the collapse of the third-largest stablecoin (UST) and what used to be the second-largest blockchain after Ethereum (Terra), the depeg contagion seems to be spreading wider. 

While UST has completely depegged from the U.S. dollar, trading at sub $0.1 at the time of writing, other stablecoins also experienced a short period where they also lost their dollar peg due to the market-wide panic.

Tether’s USDT stablecoin saw a brief devaluation from $1 to $0.95 at the lowest point in May. 12.

USDT/USD last week from May. 8–14th. Source: CoinMarketCap

FRAX and FEI had a similar drop to $0.97 in May 12; while Abracadabra Money’s MIM and Liquity’s LUSD dropped to $0.98.

FRAX, MIM, FEI and LUSD price from May. 9 – 15th. Source: CoinMarketCap

Although it is common for stablecoins to fluctuate in a very narrow range around the $1 peg, these recent trading levels are seen only during extremely stressed market conditions. The question that now sits in the mind of investors is will the fear spread even wider and will another stablecoin de-peg?

Let’s take a look at the mechanism of some of the major stablecoins and how they are currently traded in the Curve Finance liquidity pool.

The main purpose of stablecoins is to preserve a stable value and provide investors an avenue to park their money when volatility from other crypto assets are much higher.

There are two distinct mechanisms in stablecoins — asset-backed and algorithm-based. Asset-backed stablecoins are the most common version and issuers purport to back stablecoins with fiat currency or other cryptocurrencies. Algorithm-based stablecoins, on the other hand, seek to use algorithms to increase or decrease the supply of stablecoins based on market demand.

Asset-backed stablecoins were in favor during downturn, except for USDT

USD Coin (USDC), Dai (DAI) and USDT are the most traded asset-backed stablecoins. Although they are all over-collateralized by fiat reserves and cryptocurrencies, USDC and USDT are centralized while DAI is decentralized.

USDC’s collateral reserves are held by U.S.-regulated financial institutions, whereas USDT’s reserves are held by Tether Limited, which is controlled by BitFinex. DAI, on the contrary, does not use a centralied entity but uses the primary market borrowing rate to maintain its dollar peg, which is called the Target Rate Feedback Mechanism (TRFM).

DAI is minted when users borrow against their locked collateral and destroyed when loans are repaid. If DAI’s price is below $1, then TRFM increases the borrowing rate to decrease DAI’s supply as less people will want to borrow, aiming to increase the price of DAI back to $1 (vice versa when DAI is above $1).

Although DAI’s pegging mechanism seems algorithmic, the over-collateralization of at least 150% makes it a robust asset-backed stablecoin during volatile market conditions. This can be seen by comparing the price movements of USDC, USDT and DAI in the past week where DAI, along with USDC, clearly showed a spike on May 12 when investors lost confidence in USDT and rushed to swap out.

USDT, USDC and DAI hourly price. Source: CoinGecko API

Tether’s USDT has long been controversial despite its large market share in the stablecoin space. It was previously fined by the U.S. government for misstating the type of cash reserves they have. Tether claims to have cash or cash-equivalent assets to back USDT. However, a large portion of the reserves turn out to be commercial paper — a form of short-term unsecured debt, which is riskier and is not “cash equivalent” as dictated by the U.S. government.

The recent Terra debacle and the lack of transparency of their reserves triggered fresh concerns about USDT. The price reacted violently with a brief devaluation from $1 to $0.95. Although USDT’s price has recovered and repegged closely back to $1, the concerns are still there.

This is shown clearly in the largest liquidity pool on Curve Finance. The DAI/USDC/USDT 3pool in Curve shows a proportion of 13%-13%-74% for each of them respectively.

Curve DAI/USDC/USDT 3Pool proportion. Source: @elenahoo Dune Analytics

Under normal circumstances, all the assets in a stablecoin liquidity pool should hold equal (or very close to equal) weight because the three stablecoins are all supposed to be valued at around $1. But what the pools have shown in the past week is an unbalanced proportion, with USDT holding a much larger percentage. This indicates the demand for USDT is much smaller than the other two. It could also mean that for USDT to hold the same dollar value as the other two, more units of USDT are needed in the pool, indicating a lower value for USDT compared to DAI and USDC.

A similar imbalance is observed in the DAI/USDC/USDT/sUSD 4pool. It is interesting to see that sUSD and USDT both spiked in proportion around May 12 during the peak of the stablecoin fear. But sUSD has quickly reverted back to the equal portion of 25% and has even dropped in percentage since while USDT remains as the highest proportion in the pool.

Curve DAI/USDC/USDT/sUSD 4Pool proportion. Source: @elenahoo Dune Analytics

The Curve 3pool has a daily trading volume of $395 million and $1.4 billion total value locked (TVL). The 4pool has a $17 million trading volume and $65 million TVL. Both pools show USDT is still less favourable.

Are algorithmic stablecoins finished?

An algorithmic stablecoin is a different mechanism from an asset-based stablecoin. It has no reserves; therefore, it is uncollateralized. The peg is maintained through algorithmically minting and burning the stablecoin and its partner coin based on the circulating supply and demand in the market.

Due to its uncollateralized, or less than 100% collateralized nature, an algorithmic stablecoin is much more risky than an asset-backed stablecoin. The Terra UST depeg debacle has surely shaken investors’ confidence in algorithmic stablecoins. This has manifested quite clearly in the Curve liquidity pool.

FRAX — an algorithmic stablecoin by Frax Protocol — is partially backed by collateral and partially based on the algorithm of supply and demand. Although the coin is partially collateralized, the ratio of the collateralized and thealgorithmic still depends on the market price of the FRAX.

In the recent perfect storm of stablecoin panic, the ratio of FRAX versus the other three stablecoins spiked to 63% to 37%. Although the disproportion can already be seen from early March 2022, the collapse of UST definitely exacerbated the fear of a FRAX de-peg.

Curve FRAX/3CRV 3Pool proportion. Source: @elenahoo Dune Analytics

A similar surge in fear triggered by the Terra UST de-peg event is also present in MIM — Abracadabra Money’s algorithmic stablecoin. The Curve MIM/3CRV pool shows the MIM proportion jumped to 90% — a similar level reached in January when the Wonderland scandal came about.

Curve MIM/3CRV 3Pool proportion. Source: @elenahoo Dune Analytics

Despite the algorithmi similarity to DAI, MIM doesn’t use ETH directly as collateral but instead uses interest-bearing tokens (ibTKN) from Yearn Finance — ywWETH. The additional layer of complexity makes it more sensitive to catastrophic events such as the UST depeg event.

The goal for all stablecoins is to maintain a stable value. But all of them experience volatility and a lot of them have deviated away from the $1 peg much more than expected. This is probably the reason why it has led some regulators to quip that stablecoins are neither stable nor coins.

Nonetheless, stablecoin volatility is much lower than any of the other cryptocurrencies and still provides a safe harbour for crypto investors. It is therefore important to understand the risks embedded in different stablecoins’ peg mechanisms.

Many stablecoins have failed in the past, UST is not the first and it will certainly not be the last. Keeping an eye on not only the dollar value of these stablecoins but also how they stand in the liquidity pool will help investors identify potential risks ahead of time in a bearish and volatile market.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

BitMEX launches spot crypto exchange following $30M penalty

Founded in 2014, BitMEX is one of the world’s oldest crypto trading platforms, but it has never offered spot crypto trading till now.

Global crypto derivatives exchange BitMEX is expanding its platform beyond just derivatives by finally launching a spot crypto trading platform.

BitMEX officially announced on May 17 that its spot crypto exchange, the BitMEX Spot Exchange, is now live, allowing retail and institutional investors to buy, sell and trade cryptocurrencies like Bitcoin (BTC) and Ether (ETH).

At launch, the exchange supports seven pairs of cryptocurrencies, including BTC, ETH, Chainlink (LINK), Uniswap (UNI), Polygon (MATIC), Axie Infinity (AXS) and ApeCoin (APE), all trading against the Tether stablecoin (USDT).

The launch of the BitMEX Spot Exchange comes as the company plans to become one of the top ten largest spot exchanges in the world. The company decided to build its own spot exchange last year in response to the increasing crypto trading demand from its current user base, according to the announcement.

“Today, BitMEX is one step closer to providing our users with a full crypto ecosystem to buy, sell and trade their favorite digital assets. We will not rest as we aim to deliver more features, more trading pairs, and more ways for our clients to take part in the crypto revolution,” BitMEX CEO Alexander Höpner said.

Founded in 2014, BitMEX is one of the world’s largest and oldest crypto trading companies and started to provide its services about six years after Bitcoin was launched. Unlike spot exchanges, BitMEX has been mainly focusing on derivatives, allowing users to buy and sell contracts like futures, options and perpetuals on a wide range of crypto assets.

At the time of writing, BitMEX is one of the top 30 biggest derivatives crypto trading platforms, with daily trading volume amounting to $841 million, according to data from CoinMarketCap. BitMEX was ranked one of the biggest derivatives platforms by open interest alongside Binance as of 2020.

BitMEX has faced some legal issues recently, with founders Arthur Hayes and Hong Konger Benjamin Delo pleading guilty to violating the Bank Secrecy Act in February 2022. The court eventually ordered a total of $30 million civil monetary penalties from the three co-founders of the BitMEX crypto derivatives exchange in March.

Related: The Brazilian Stock Exchange will launch Bitcoin and Ethereum futures

The firm also reportedly laid off about 75 employees — or a quarter of the company’s staff — in April, following a failed acquisition of the German bank Bankhaus von der Heyd.

BitMEX did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.

Crypto.com unblocks users, reverses glitched LUNA trades that made 30-40x

On May 13, Crypto.com abruptly barred users from trading after an internal tool detected the system quoting incorrect prices for LUNA.

Crypto.com was one of the few crypto exchanges to keep Terra (LUNA) trades open as Terra’s death spiral saw an unrecoverable price crash of LUNA and stablecoin TerraUSD (UST). However, a technical glitch on Crypto.com’s mobile application allowed users to get away with a 30-40x profit on LUNA trades momentarily.

On Friday, Crypto.com abruptly barred users from trading after an internal tool detected the system quoting incorrect prices for LUNA due to some error. Just when Crypto Twitter started raising concerns about trade reversals on the exchange, Kris Marszalek, CEO of Crypto.com, revealed details about a glitch that allowed users to make away with massive profits.

According to Marszalek, users who traded “during those 59 minutes” are eligible for a buyback option at the market price for LUNA tokens, which has since fallen to $0.0004685 at the time of writing. It is important to note that LUNA achieved its all-time high market price of nearly $120 on April 5. 

Marszalek noted:

“The root cause was a combination of multiple external factors (tick size changes due to Luna death spiral, withdrawals & entire Luna chain stopping) together leading to price dislocations that should typically be caught by index pricing, but weren’t.”

After a day’s review on the LUNA trade debacle, Marszalek informed that “all user accounts have been re-enabled.”

While Crypto.com reversed the LUNA transactions, the company has offered $10 worth of its in-house token Cronos (CRO) as a goodwill gesture for affected investors.

Related: Breaking: Terra blockchain officially halted following LUNA price collapse

With LUNA’s price collapsing more than 99%, validators for the Terra blockchain officially halted the network aiming to prevent governance attacks.

The validators are expected to relaunch the network only after implementing a new patch to disable further delegations.


Failed exit? Traders complain Crypto.com reversed profitable LUNA transactions

Terra’s death spiral resulted in the mispricing of LUNA tokens on the popular cryptocurrency exchange. Traders aren’t happy with the compensation.

Cryptocurrency exchange Crypto.com has halted the trading of Terra (LUNA) tokens after it determined that user transactions were quoted at an “incorrect price,” prompting severe backlash from the community.

In a Friday news release, Crypto.com said that LUNA trades have been halted due to a pricing error between 12:40 and 13:39 UTC on May 12. “[U]sers who traded LUNA were quoted an incorrect price,” the exchange said. “Our systems quickly detected the error and trading was halted. Trading remains halted until further notice.”

Market participants took this to mean that the exchange had basically reversed profitable LUNA transactions by traders attempting to exit the cryptocurrency, which has been in a death spiral for several days. That may explain why Crypto.com is attempting to compensate for the mistake by offering affected users $10 worth of Cronos, or CRO, the exchange’s native token.

Some observers noted that Crypto.com should take responsibility for any pricing error on its platform rather than penalize traders for executing profitable transactions.

Multiple exchanges have moved to delist LUNA and TerraUSD (UST) assets amid the protocol’s stablecoin collapse. As Cointelegraph reported, LUNA/USDT contracts were delisted by Binance on Thursday after the trading pair fell below 0.005 USDT. On Friday, the exchange suspended all spot trading for LUNA and UST. The Binance delistings began one day after Huobi removed LUNA margined swaps.

Related: Why did Terra LUNA and UST crash? | Find out on The Market Report

LUNA’s price is down over 99% this week and was last seen trading at basically zero, or $0.00013, according to CoinMarketCap. Its UST stablecoin never managed to regain its peg to the United States dollar and was last seen trading at $0.15, down 57.7% on the day.

Breaking: Binance suspends LUNA and UST trading amid issues on Terra blockchain

Binance suspended LUNA/BUSD and UST/BUSD on its spot trading platform following the halting of the Terra blockchain.

Global cryptocurrency exchange Binance has suspended trading pairs with Terra (LUNA) ecosystem’s cryptocurrencies, LUNA and TerraUSD (UST), on its platform following the major crash of the algorithmic stablecoin.

Binance confirmed the move on May 13, with spot trading for LUNA/BUSD and UST/BUSD trading pairs being suspended. It’s not clear when the withdrawals for LUNA and UST will continue, as the crypto exchange simply stated that it will wait for the issues with the Terra network to be solved.

It is the latest move by the world’s largest cryptocurrency exchange by trading volume following one of the most significant black swan events to hit the space since the inception of Bitcoin (BTC) in 2009.

Binance Futures delisted coin-margined LUNA perpetual contracts on Thursday despite plans to salvage the floundering LUNA and UST. Terra blockchain validators were forced to take the network offline on May 12 in an effort to stem potential governance attacks following the crash of the network’s LUNA token.

Related: Untethered: Here’s everything you need to know about TerraUSD, Tether and other stablecoins

Binance founder Changpeng “CZ” Zhao took to Twitter to address the situation, with the exchange ever cautious about decisions that may have further effects on markets and cryptocurrency prices.

CZ said the move was necessitated by Terra validators’ decision to take the network offline, which resulted in no deposits or withdrawals possible to or from any exchange. The Binance CEO believes the decision to suspend trading on its platform would safeguard unwitting investors who continued to acquire LUNA in the hopes of capitalizing if and when the LUNA network resumes operation:

“Some of our users, unaware of the large amounts of newly minted LUNA outside the exchange, started to buy LUNA again, without understanding that as soon as deposits are allowed, the price will likely crash further. Due to these significant risks, we suspended trading.”

CZ noted that Binance aimed to maintain neutrality in regards to users and industry peers and typically refrained from issuing comments or actions towards other projects. The ongoing debacle meant that CZ was left with no choice but to break that rule:

“I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response or much response at all.”

Terra’s LUNA and its algorithmic stablecoin Terra USD suffered a dramatic crash on May 10, as UST lost its $1 peg. The system was designed to automatically maintain its peg to the U.S. dollar — with the failure leading to a systematic devaluing of UST while LUNA tokens began to be minted at an unprecedented rate.

The crash was cataclysmic, as the value of LUNA sunk 95% in space a week. Terra founder Do Kwon released a short-term roadmap to try and revive the ecosystem. The proposal entailed burning $1.4 billion UST while staking 240 million LUNA tokens in an effort to stem the devaluation of the UST $1 peg.