Cryptocurrency exchange Crypto.com has halted trading of Terra (LUNA) tokens after determining that user transactions were being quoted at “incorrect prices,” sparking a community backlash.
Crypto.com said in a Friday press release that LUNA trading has been halted due to a pricing error between 12:40 and 13:39 UTC on May 12.[U]Clients who traded LUNA were quoted incorrectly,” the exchange said. “Our systems quickly detected the error and stopped trading. Trading remains suspended until further notice. “
Market participants believe this means the exchange has essentially reversed a profitable LUNA trade for traders trying to exit the cryptocurrency, which has been in a death spiral for several days. This could explain why Crypto.com tried to make up for the mistake by offering $10 worth of Cronos or CRO (the exchange’s native token) to affected users.
Just now: https://t.co/gp8AK4709L Reversing a profitable $LUNA trade from May 12, claiming that users “quoted incorrectly.”
— Watcher.Guru (@WatcherGuru) May 13, 2022
Instead of punishing traders for executing lucrative trades, some observers have pointed out that Crypto.com should be held responsible for any mispricing on its platform.
@cryptocom you are responsible for giving your customers wrong prices, I would personally leave any exchange that does that
— Wolf⛓ (@Thecryptowolf4) May 13, 2022
Multiple exchanges have delisted LUNA and TerraUSD (UST) assets amid the collapse of the protocol’s stablecoin. As Cointelegraph reported, Binance delisted the LUNA/USDT contract on Thursday after the pair fell below 0.005 USDT. On Friday, the exchange suspended all spot trading in LUNA and UST. Binance’s delisting begins a day after Huobi canceled the LUNA margin swap.
Related: Why did Terra LUNA and UST crash? | Understanding Market Reports
The price of LUNA is down more than 99% this week, and was last traded at essentially zero, or $0.00013, according to CoinMarketCap. Its UST stablecoin, which never managed to re-peg to the U.S. dollar, last traded at $0.15, down 57.7% on the day.