- Withdrawals on Luna network suspended at 02:20 AM (UTC) on May 10
- To be reinstated after Luna network stabilizes
- Uncontrolled emotion responsible for investor panic – CZ
The cryptocurrency exchange, Binance has suspended withdrawals on the Luna network after the Terra USD depegged. The announcement, released via a blog post on the Binance website stated that the move became necessary due to the spike in the trading volume resulting in a lot of pending withdrawals.
Luna Withdrawals To Restart After Volume Normalizes
The release stated that the suspension took effect at 02:20 AM (UTC) on May 10, taking cognizance of the congestion of the Luna blockchain due to the high network activity. The statement added that the exchange will enable withdrawal again when the network is considered stable and the demand for withdrawal has normalized.
Withdrawals on Terra Network $LUNA temporarily suspended.https://t.co/hIGrAEzOwD
— Binance (@binance) May 10, 2022
A couple of hours after the temporary suspension of withdrawals on the Terra network, the Binance CEO, Changpeng Zhao, alluded to the panic withdrawal responsible for the Luna network clog.
Investments Should Be At Tolerable Level
In a Twitter post, CZ said that the reason people panic during market downturns is because they over invested. According to him, people whose emotion kick in during dips need to readjust their investment strategies by reducing their investment amounts by 2x or even 10x. He wrote in the tweet:
“You will be in a much better position to control your emotions. Only increase your position when you can handle your emotions.”
Emotions. If you panic during a dip, you probably over invested. Try reduce your investment size by 2x or 10x. You will be in a much better position to control your emotions. Only increase your position when you can handle your emotions.
— CZ 🔶 Binance (@cz_binance) May 10, 2022
Meanwhile, Terra USD, the Luna network stablecoin that depegged and dropped nearly 4 cents earlier today, May 10, is currently trading at $0.9179 after the Luna Guard Foundation dumped $1.4 billion in bitcoins after it depegged. Bitcoin is currently trading at $31,845, down by 17.26% in the past one week.