Crypto News

Terra’s Outage Hinders LUNA-based ETN From Trading

After Terra lost nearly all of its value in a week, three distinct exchange-traded product (ETP) issuers stated they would stop trading and issuing shares in LUNA-related investment vehicles.

PicsArt 05 15 01.47.37

In Europe, VanEck, Valour, and 21Shares, which all offer luna ETPs, have ceased issuing shares, citing the network’s recent difficulties, which include two complete shutdowns of the apparently decentralised network. This week, all three items lost nearly all of their value.

Given the halts in the LUNA Network, issuer VanEck said today that it will cease creations and redemptions for its VanEck Terra ETN. LUNA’s blockchain was shut down twice in 24 hours due to concerns that it had been vulnerable to an assault. Do Kwon, the co-founder and CEO of Terraform Labs, has since proposed a $1 billion token creation proposal. VanEck’s statement said,

“VanEck is unable to conduct transactions in Luna through the Terra network. Therefore, it is technically not possible to accept creations and redemption for VanEck Terra ETN.”

21Shares released resources on the LUNA collapse, stating that the indexed products will reflect the LUNA volatility.

21Shares, like VanEck, is unable to perform the creation and redemption methods in its product due to the network outage. Hany Rashwan, the firm’s CEO and co-founder, told ETF Stream that the issue would be continuously monitored.

Valour, on the other hand, has decided to suspend its Valour LUNA SEK, citing “extreme volatility and persistent uncertainty” in the LUNA environment. The Nordic Growth Market exchange is where the product is traded.

Terra’s LUNA makes a small comeback

According to Coingecko data, LUNA has had a mini-comeback in the last 24 hours, with its value rising by nearly 3000 percent to trade as high as $0.00058798. The crypto sector has seen one of its worst sell-offs in recent days, with Terra blockchain suffering the most.

The value of Layer 1’s native token, LUNA, which was among the top 10 most valuable digital assets by market cap, plummeted by 100 percent. To put things in perspective, just a week ago, the crypto currency was trading for over $70.

Apart from LUNA, the network’s stablecoin, UST, has also lost its peg and has become the latest algorithmic stablecoin to fail.

Source link