With Indian crypto exchanges facing a crisis after the cryptocurrency Luna crashed to almost zero on Friday, CoinSwitch joined the corporate league to remove Luna from its platform. The cryptocurrency, which is part of the Terra blockchain, fell victim to the recent fall in the price of major cryptocurrencies.
According to the company’s release, it said, “at CoinSwitch, we regularly review the coins we have listed to ensure they meet our highest standards. Based on the latest market movements for Luna (from the Terra Protocol), you may have seen the risk meter, which warns too high volatility and urges you to act with caution. “
“We have now decided to delist Luna to protect your and the larger crypto ecosystem’s interests. This is the result of the massive fall in the price of the token, following the crash of its sister token and stablecoin, TerraUSD (UST), and the stopping of the Terra blockchain.” , it said.
At the same time, Terraform Labs is working on ways to keep its Terra blockchain and ecosystem running despite the collapse of its cryptocurrency stablecoin, according to a blog post attributed to co-founder Do Kwon.
The proposal includes redistribution of ownership of the blockchain network to investors who saw the value of their TerraUSD stablecoin and Luna tokens wiped out this week. The proposal, entitled “Terra Ecosystem Revival Plan”, would distribute 1 billion new Luna tokens to UST and Luna holders, according to Bloomberg Report.
Whether the proposal would save the blockchain is still in question. The network had relied heavily on investor confidence to make its algorithmic stablecoin work before the meltdown.
“Although the tap would eventually be restored after the last marginal buyers and sellers capitulated, the owners of Luna have been so severely liquidated and diluted that we will lack the ecosystem to rebuild from the ashes,” Kwon is quoted as saying. in the comments.
(With input from agencies)