Binance Delists Tether-Margined Terra Futures as LUNA Crashes

Binance Takes Action as LUNA Plummets

In a surprising turn of events, Binance, one of the leading crypto exchanges, has decided to delist its Tether (USDT)-margined Terra (LUNA) futures contracts. The move comes after LUNA saw a staggering drop of over 99% in just 24 hours. If you thought your investments were risky, try holding LUNA right now!

Precautionary Measures Announced

According to a blog post released by Binance, they are implementing “precautionary measures” surrounding the LUNA/USDT perpetual contracts. Specifically, they plan to delist the trading pair if the price dips below the threshold of 0.005 USDT. Talk about a hair-raising rollercoaster ride for investors!

Changes in Trading Conditions

Prior to the delisting announcement, Binance had also altered the leverage and margin tiers for LUNA-related contracts. The platform set the maximum leverage at eight times for positions under 50,000, which sounds slightly less fun than placing a bet at a Vegas casino during a poker tournament.

Launch of BUSD-Margined Futures

To soften the blow from the LUNA fallout, Binance is rolling out Binance USD (BUSD)-margined LUNA futures contracts. This appears to be an attempt to provide investors a new avenue to explore, just in case LUNA/USDT goes the way of the dodo. If only we could all just pop open a new future contract like a fizzy soda!

Market Reaction and Wider Implications

The consequences of LUNA’s volatility reach far beyond it. Other cryptocurrencies are feeling the heat, with Bitcoin (BTC) dropping to under $27,000 and Ether (ETH) sliding below $2,000 for the first time since July 2021. It feels like a crypto hangover after a wild party that everyone was invited to.

Confessions from the Crypto Frontlines

In response to a barrage of FUD (fear, uncertainty, doubt) rumors on social media, several crypto exchanges have come out to affirm the safety of user funds. Celsius Network’s CEO reassured users that everything is just fine, while Coinbase’s head honcho insisted they wouldn’t be filing for bankruptcy anytime soon. Meanwhile, Terra co-founder Do Kwon has teased a “recovery plan” for TerraUSD (UST). However, with LUNA’s trajectory looking like the last space shuttle launch, we’re all left asking: will they make it back to Earth?