The Crypto market was filled with the news of the Luna coin depreciating over the week. As a reaction to the market news, major cryptocurrency exchange platforms in India have taken reactionary steps to offset the news by delisting Luna.
Luna coin dipped from a value of about $80 over the previous week to $0 by Friday. According to the report from CoinMarketCap, the coin has had a reduction from its market cap of $27.6 billion to less than $252 million. As a result of the crypto meltdown, platforms like CoinDCX, WazirX, and CoinSwitch Kuber in India have delisted the coin from their platform.
Delisting Coin to Ensure Compliance
One of the crypto exchange platforms, CoinSwitch, issued a statement on Friday stating why the coin had been delisted. The company explained that it constantly reviews all the coins available on its platform to ensure it meets up with its compliance regulation. Unfortunately, Luna has fallen off the compliance regulation.
The company further stated that while the buying option has been disabled, it has opened a small window for users to sell their assets and gain some value back from their investment. Due to unforeseen circumstances, all restrictions placed on sales have been removed.
Darshan Bathija, the CEO and Co-Founder of Vauld, commented about the issues regarding Luna coin and Terra. He stated that the Terra blockchain was clamped down shortly to fix a potential loophole whereby investors might want to stake on the coin when it fell low to 2 cents. The actions were also to prevent governance attacks, leading to further clampdown of the crypto ecosystem.
CoinDCX shared in a tweet that the UST and LUNA coins were delisted from the CoinDCX App. However, users can continue to trade the assets using other trading pairs available on the platform.
Other significant crypto players have also stated that the halting of transactions is to ensure that the traders are protected and also to have a deciding moment before the next steps of action are taken. These actions are necessary in ensuring that active players are protected during this period of volatility.