Terraform Labs has been scrambling to find ways - including reportedly trying to raise money - to resolve the situation, but so far it has had no luck. These influencers are setting our industry back Due to these significant risks, we suspended trading,” he said.Ī few months ago publicly ridiculed ETH and started relentlessly shilling LUNA. “Some of our users, unaware of the large amounts of newly minted LUNA outside the exchange, started to buy LUNA again, without understanding that as soon as deposits are allowed, the price will likely crash further. Their validators have suspended their entire network, resulting in no deposits or withdrawals possible to or from any exchange,” said Changpeng Zhao, founder and chief executive of Binance, in a Twitter thread.

“An exponential amount of new LUNA were minted due to flaws in the design of the Terra protocol. Earlier on Thursday, Terraform Labs briefly halted the network to prevent any hacks. In the meantime, Terraform Labs said it is halting the Terra blockchain and is working to “come up with a plan to reconstitute it.” It’s the second time the Terra blockchain has been frozen this week. Scores of other crypto exchanges, including FTX,, KuCoin, OKX and CoinDCX, have taken steps in recent hours to address the incident. The move, which follows the exchange pulling support for trading of futures contracts for the Luna token earlier on Thursday, comes as Terraform Labs has increased the circulating supply of Luna tokens to over 6.5 trillion, up from 386 million three days ago (according to Terrascope, a tool that tracks Terra stats) in an attempt to push its sister token, a supposed stablecoin, to regain its 1-to-1 peg to the dollar. The exchange indefinitely suspended the trading of Luna and UST tokens across all its spot, cross margins and isolated margins pairs after the tokens lost nearly 100% of their value in a span of days. Binance, the world’s largest cryptocurrency exchange, has halted the trading of Terraform Labs’ Terra (Luna) and TerraUSD (UST) tokens on its platform following one of the industry’s biggest meltdowns.

Binance luna