With Indian crypto exchanges facing a crisis after cryptocurrency Luna crashed to nearly zero on Friday, CoinSwitch joined the league of companies to delist Luna from its platform. The crypto token, which is part of the Terra blockchain, became a casualty of the recent fall in prices of major cryptocurrencies.
As per the company release, it said, “at CoinSwitch, we periodically review the coins that we have listed to ensure they meet our highest standards. Based on the recent market movements of Luna (from Terra protocol), you may have seen the Riskometer, warning of high volatility and urging you to trade with caution.”
“We have now decided to delist Luna to safeguard your interests and those of the larger crypto ecosystem. 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 halting of the Terra blockchain,” it said.
Meanwhile, Terraform Labs is working on ways to keep its Terra blockchain and ecosystem going despite the collapse of its cryptocurrency stablecoin, according to a blog post attributed to co-founder Do Kwon.
The proposal includes the redistribution of ownership of the blockchain network to investors who saw the value of their TerraUSD stablecoin and Luna tokens get wiped out this week. The proposition, titled “Terra Ecosystem Revival Plan,” would distribute 1 billion new Luna tokens to UST and Luna holders, as per Bloomberg report.
Whether the proposal would save the blockchain remains in question. The network had relied heavily on investors’ confidence to make its algorithmic stablecoin work before the meltdown.
“Even if the peg were to eventually restore after the last marginal buyers and sellers have capitulated, the holders of Luna have so severely been liquidated and diluted that we will lack the ecosystem to build back up from the ashes,” Kwon is cited as saying in the commentary.
(With inputs from agencies)