The downward spiral for the LUNA token resulted in massive price instability, volatility and congestion. This resulted in many crypto exchanges halting LUNA and UST trades. Crypto.com was among the few exchanges that kept LUNA trades open amid the price decline.
Crypto.com users make massive profits after LUNA glitch
A technical glitch on the Crypto.com mobile application enabled users to make profits ranging between 30x and 40x on LUNA traders for a while. Following this glitch, the exchange halted LUNA trading after an internal tool detected that the network quoted false prices for LUNA trades.
Crypto.com users on Twitter started complaining about trade reversals on the platform. The CEO of Crypto.Com, Kris Marszalek, commented on the development, saying that the glitch had allowed users to make away with high profits that had not been realized.
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“There was a lot of customers who were buying at wrong prices, and of course, some also jumped onto the opportunity to exploit the glitch to the maximum. We reversed ALL trades. Some customers saved a ton of $ and are thanking us, some didn’t abuse the glitch and are bashing us,” Marszalek said.
Marszalek added that users who traded within the 59 minutes were eligible for a buyback option at the ongoing prices of LUNA. LUNA has witnessed a massive price drop, and it was trading at $0.000468 at the time of writing after reaching an all-time high of almost $120 on April 5.
Marszalek explained that “the root cause was a combination of multiple external factors (tick size changes due to a Luna death spiral, withdrawals & entire Luna chain stopping) together leading to price dislocations that should typically be caught by index pricing, but weren’t.”
After the arguments raised by crypto Twitter, Marszalek said that all user accounts had been restored. After reversing the LUNA transactions, the exchange offered a $10 reward worth of Cronos (CRO) to the affected users.
The collapse of Terra LUNA
The Terra blockchain has faced a tough time during the past week following the depegging of the UST stablecoin and the collapse of LUNA. The value of LUNA has dipped by more than 100% over the past week.
The Terra network has been halted severally following these occurrences. The co-founder of Terra, Do Kwon, announced a recovery plan for the network that involves staking LUNA. The token is showing signs of recovery despite being way below its price a week ago.
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