LUNA Faces Delisting Problems on Popular Crypto Exchange

LUNA, which is currently in a turbulent moment, has also been hit with delisting problems. Top crypto exchange Binance has decided to delist some of LUNA’s trading contracts. This is due to its persisting price decline.

Binance Futures to Delist Coin-Margined LUNA Perpetual Contracts

Earlier today, Binance Futures conducted automatic settlements on the Coin-Margined LUNA Perpetual Contracts and then deleted the contracts. Prior to this, the exchange pre-informed its users to close all open positions to avoid automatic settlements of their positions. 

Also, leverage and margin tiers of the USDT-Margined LUNA Perpetual Contracts have been updated. For each tier, the maximum leverage levels and initial margin rates have been adjusted. While the maximum leverage for USDT-Margined LUNA Perpetual Contracts is now 8x. 

The announcement further noted that existing positions opened before the update remains unaffected. In addition, Binance wrote that further changes could be effected without prior notice. 

Binance Margin to Delist LUNA on Cross Margin and Isolated Margin

Per another notice, Binance Margin will delist LUNA on Cross and Isolated Margins. This implies that the coin will no longer be a borrowable asset for margin traders. Currently, Binance has suspended cross and isolated margin borrowing for the asset. Whereas, the delisting will happen at 07:00 AM (UTC) on May 13, 2022. 

In other words, the exchange will close all open positions in this trading category, cancel all pending orders and also conduct automatic settlements at the projected date and time.

Precisely, the trading pairs to be delisted include LUNA/BUSD, LUNA/USDT, LUNA/BTC, LUNA/ETH, LUNA/UST on both the cross and isolated margins accordingly. 

In addition, the announcement noted that users can still trade the above assets on other trading pairs that are available on Binance.

However, due to the persisting free fall of LUNA’s price, the exchange wrote in a recent tweet that:

“Should the price of the LUNA/USDT contracts go below 0.005 $USDT, Binance shall proceed to delist the contracts. 

Any further information including the delisting time will be announced accordingly.”

What is Delisting?

When a particular coin or token becomes tradable on a particular exchange, it is said that the crypto exchange has listed the coin or token. Conversely, when an exchange removes a listed asset, it is said that the asset has been delisted. 

More so, when a coin gets delisted from an exchange, all of its trading pairs will stop trading and be removed. It is worthy of note that many factors can always lead to the delisting of an asset from an exchange. 

Most often, delisting happens when a project ceases operations, does not meet listing requirements, undergoes a hard fork, or split or reverse split occasions with new coins. 

In this case, the delisting of some of LUNA’s trading contracts is due to the recent price collapse of the asset.