wiped out in the most dramatic collapse of a major digital asset in the last few years.
At 5:00 pm Indian time on Coinmarketcap, the Luna token was trading at $ 0.00003513, nearly 99.96% in the past 24 hours.
On May 6, the token had traded at $ 80 before the slide began. The Luna alternative currency was popular with Indian cryptocurrency investors after going from $ 1 to hitting $ 119.18 within 12 months.
“Indian cryptocurrency investors have lost large sums due to the current crash. I’m hearing horror stories about how small investors saw their investments in Luna go to zero within hours, ”said Chahal Verma, a cryptocurrency investor based in Gurgaon.
Indian exchanges informed users what to do with their holdings.
“After careful deliberation, we have decided to remove Luna from Coinswitch Kuber,” said Ashish Singhal, founder and CEO of CoinSwitch. “If you own Luna, you can sell it by May 14 at 5pm (IST). If you still choose to keep Luna and not sell, your stake will still be reflected in the CoinSwitch account. However, you will no longer be able to buy Luna.
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WazirX has removed three trading pairs from its platform: Luna / Inr, Luna / WRX, and Luna / USDT.
Coinswitch, the main stock exchange, also stopped Luna’s transactions.
“The enormous market volatility overnight caused the Earth network to collapse, leaving a ripple effect on the entire crypto ecosystem,” said Minal Thukral, SVP, Growth and Strategy, Coinswitch. “The outlook for several cryptocurrency players with exposure to Luna is under stress. While this is certainly an unfortunate turn of events, we remain confident on the strength of the market recovery, which will come in due course. As a precaution, CoinDCX has halted transactions. for Luna to protect traders on our platform “.
Meanwhile, Bitcoin and other cryptocurrencies recovered on Friday after posting losses during the week. Bitcoin had surpassed $ 30,000 after hitting $ 26,000 on Thursday. Ethereum was up 8%, Binance Coin jumped over 11% and Solana by 16%. Total cryptocurrency market cap was $ 1.31 trillion on Friday.
The UST stablecoin, Luna and Anchor operated by Terra Network were interconnected. The troubles began on Monday, when Terra’s Terra USD (UST) algorithmic stablecoin began to decline due to talk about some big players downloading the digital asset. This led to a run on the moon and once the FSO was devalued by the dollar, the coins crashed.
On Friday, the Terra network was discontinued by validators as its offering increased exponentially. The network was also shut down on Thursday to prevent attacks on governance.
Binance, the leading global cryptocurrency, has announced that it has temporarily suspended all deposits and withdrawals on the Earth network.
Experts said investors should research projects, technology and promoters before investing in tokens and not just blindly follow returns.
“A cryptocurrency is a functional product of the underlying technology, the blockchain, which could change many, if not most, of the traditional processes and activities in the world today,” said Toby Gilbert, CEO of Coinweb. “Investors should look very closely at the underlying technology and the team providing it for any token they are considering purchasing. Although Terra had a pedigreed team in the areas of software development and tech startups, it didn’t when it comes to it. of financial products and, as a result, now over 4 million investors are paying the price. There is a good reason why regulators play the role they play in traditional markets. ”
Some Indian exchanges like BuyUcoin and some global exchanges like Kucoin and FTX have chosen not to remove Luna in the hope that the blockchain ecosystem still has some hope of rebirth.
“At BuyUcoin, protecting the interest of our users is our top priority and removing Luna would mean the entire user investment will go to zero,” said BuyUcoin CEO Shivam Thakral. “BuyUcoin did not cancel Luna, which allows our valued users to minimize losses through cost averaging. We always advise our users to invest in cryptocurrencies with a horizon of two to three years “.
Previously, cryptocurrency pundits had set Luna at $ 143 by the end of 2022.