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.
@cryptocom u need to take responsibility for providing wrong prices to your customers, personally I would leave any exchange that would do this— wolf ⛓ (@Thecryptowolf4) May 13, 2022
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.
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.