Leading Crypto Exchange, Binance has announced the suspension of LUNA and UST token withdrawal due to network slowdown. This comes after major exchange platforms like Kraken and Coinlist also halted the withdrawal of the tokens due to network issues.
According to the statement, Binance faulted the high rate of transactions relating to the two tokens as a reason for the suspension. However, Binance stated that the suspension is temporal, and withdrawal will commence immediately if there’s network ease.
Traders further confirm the development while they decry the network slowdown. Reports further confirm that traders are counting their loss already as a UST now sells between 70-75 cents.
Additionally, Terra foundation took to Twitter this morning to encourage traders from adding to the woes. The foundation urged traders not to spam public infra due to the high level of pending transactions.
Luna and UST woes
At the moment, the UST stablecoin is enduring a difficult time as the third-largest stablecoin. With data reflecting how it’s struggling to attain stability between $0.6065 and $0.85. The value of the token keeps falling as a result of the weakening situation of its reserve.
LUNA on the other side is also struggling, data also reveal how it dipped from $62.50 to $28.59 within a day. These struggles further reflect the general dip in the crypto sphere as major tokens are falling beyond normal. Above all, Traders still maintain hope in the strength of LUNA and UST to bounce back against all odds.
More so, to further arrest the deteriorating situation of the UST, recently the Luna Foundation Guard approved a loan of $15 billion Bitcoin. The group already aqcuired $3 billion Bitcoin in the reserve as of the early periods of this week. The loan according to the group will support the Stablecoin to reclaim its position beside the dollar.
Nonetheless, the effect of the loan is yet to manifest as the UST keeps falling against the dollar. Lastly, LUNA and UST are likely to rebound once the market is stable. UST in particular will recover well due to the recent upgrade in its reserve with the latest Bitcoin loan.