Binance suspends LUNA and UST withdrawals

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Binance, a cryptocurrency exchange, announced that it has temporarily suspended the withdrawal of the UST and LUNA stablecoins due to some bottlenecks. This occurs after the TerraUSD (UST) stablecoin has collapsed. released from the US dollar causing a drastic drop in its price and that of LUNA. LUNA, for example, fell by more than 85% today. In an official announcement issued yesterday, Binance stated: “The withdrawals of LUNA and UST tokens on the Terra (LUNA) network were temporarily suspended on 10 – 05 – 2022 at 02: 20 (UTC) due to a high volume of pending withdrawal transactions. This is caused by the slowness and congestion of the network. Binance will reopen withdrawals for these tokens once we deem the network stable and the volume of pending withdrawals has reduced. We will not notify users in a further announcement. We apologize for any inconvenience. ” LFG wants to restore the stability of its FSO by liquidating its Bitcoin reserves Luna Foundation Guard (LFG), the Earth organization, has already started looking for ways to restore its troubled UST stablecoin to its former glory by liquidating its Bitcoin reserves to buy more USTs. A leading cryptocurrency analyst, Colin Wu, explains this by saying: “The Moon Foundation Guard (LFG) Bitcoin address just transferred 28. 205, 5 Bitcoin to Binance and the address balance is 0 Now. The address sent out 42. 530 bitcoin today and then re-transferred some 28.205 inside.” The Bitcoin address of the Luna Foundation Guard (LFG) has just transferred 28, 205. 5 Bitcoins to Binance, and the balance of the address is 0 now. The address transferred 42, 530 bitcoins out earlier today and then transferred 28, 205 bitcoins in. – Wu Blockchain (@WuBlockchain) May 10, 2022 To clarify further, the Luna Foundation Guard noted that its recent update has already started lending its Bitcoin reserves to MMs. LFG has said: “The last clip withdrawn by LFG was approximately 37 . 000 BTC. Similar to the latest distribution, it was loaned to MM. Very little of the recent clip was spent, but it is currently being used to purchase $ UST. Updates coming soon. ” Below is the new LFG $ BTC wallet address: https: // Last clip withdrawn by the LFG was ~ 37 K BTC. Similar to the last deployment, it has been loaned to MMs. Very little of the recent clip has been spent but is currently being used to buy $ UST. Updates coming. – LFG | Luna Foundation Guard (@LFG_org) May 9, 2022 But the big question remains , Will Terra be able to regain investor confidence and convince them to use their UST stablecoin even if it is in control of the situation?