Cryptocurrency exchange Crypto.com halted trading in Terra (LUNA) tokens after determining that users’ trades were quoted at an “incorrect price”, prompting severe backlash from the community.
In a Friday press release, Crypto.com said LUNA trading was halted due to a pricing error between 12:40 and 13:39 UTC on May 12.[U]sers who traded LUNA were quoted at an incorrect price,” the exchange said. “Our systems quickly detected the error and trading was halted. Trading remains suspended until further notice.”
Market participants took this to mean that the exchange essentially canceled profitable LUNA trades from traders attempting to exit the cryptocurrency, which had been in a death spiral for several days. This may explain why Crypto.com is trying to make up for the mistake by offering affected users $10 worth of Cronos, or CRO, the exchange’s native token.
JUST IN: https://t.co/gp8AK4709L is turning profitable $LUNA trades from May 12, saying users “were priced incorrectly.”
—Watcher.Guru (@WatcherGuru) May 13, 2022
Some observers have noted that Crypto.com should take responsibility for any pricing errors on its platform rather than penalizing traders for executing profitable trades.
@cryptocom you have to take responsibility for providing wrong prices to your customers, personally i would leave any exchange that does this
— wolf ⛓ (@Thecryptowolf4) May 13, 2022
Several exchanges have decided to remove LUNA and TerraUSD (UST) assets amid the collapse of protocol stablecoins. As UKTN 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. Binance’s delistings began a day after Huobi removed LUNA margin swaps.
Related: Why did Terra LUNA and UST crash? | Learn about The Market Report
LUNA’s price is down over 99% this week and was last seen at zero or $0.00013, according to CoinMarketCap. Its stablecoin UST never managed to regain its peg to the US dollar and was last seen at $0.15, down 57.7% on the day.