The popular cryptocurrency exchange, Binance, has relisted LUNA and Terra Stable Coin, UST, following their trading suspension that lasted over 20 hours.
According to the tweet published yesterday by the official exchange Twitter handle, it has resumed spot trading for UST/BUSD LUNA/BUSD, which was initially suspended.
Both LUNA and UST trading was halted on Thursday to prevent further attacks as a large amount of new LUNA were minted due to flaws in the Terra Protocol design to prevent LUNA’s price from crashing further.
Binance initially planned to resume spot trading, deposits, and withdrawals for Terra assets at 14:00 (UTC) on May 13. However, the resumption was delayed by 30 minutes.
In the announcement tweet, the exchange urged potential investors and traders to research the fundamentals and risks associated with LUNA and UST before trading. The relisting on Binance came shortly after Terra Protocol tweeted that its blockchain had resumed block production.
In addition, Binance CEO Changpeng Zhao also warned traders against buying a coin, in this case, LUNA and UST, just because trading is on, in a tweet he published, urging them to exercise extreme caution.
Should you buy the dip?
The current algorithm used by Terra allows traders to trade UST for an equal value of LUNA, which means that if you sell one UST at $0.40, it generates 500 LUNA, which sounds like a great deal.
But this mechanism keeps increasing the total supply of LUNA, making it quite difficult for LUNA’s value to increase. So far, its current market cap has risen to about 7 trillion, up from the 368 million cap of six days ago.
In addition, Changpeng Zhao shared his thoughts on the LUNA/UST crash on Twitter on Thursday. In his tweets, he expressed his disappointment with how the Terra Labs team handled the UST/LUNA crash event, urging them to recover the UST $1 peg and burn the extra-minted LUNA, which has increased its market capitalization significantly.
