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VanEck and 21Shares Suspend Terra ETPs After Recent LUNA Price Crash

VanEck and 21Shares Suspend Terra ETPs After Recent LUNA Price Crash

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Answer VanEck and 21Shares Suspend Terra ETPs After Recent LUNA Price Crash

Following the latest breakdown of the Terra ecosystem this week, VanEck and 21Shares have decided to suspend the creation and redemption of ETP (Exchange-Traded Shares) of Terra.

The 21Shares Terra ETP and VanEck Terra ETN have both been suspended.

Terra’s original cryptocurrency LUNA was supposed to help the UST stablecoin maintain its peg to the dollar.

But the price of LUNA collapsed all the way to $0 while UST continued to de-peg.

In the end, the Terraform Labs team had to pause the Terra blockchain for a moment and then restart again.

Hani Rashwan, CEO and co-founder of 21Shares, the provider and supervisor of ETPs stated:

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We will continue to monitor this rapidly developing situation closely.

The Luna network currently operates intermittently and inconsistently to produce blocks and cannot function normally.

So transactions can still be done but in an intermittent environment.

On the other hand, it told VanEck that it would take a similar position on the matter.

VanEck noted:

The low value of Luna caused problems and risks for the Terra network which led to the Terra auditors’ decision to discontinue the network.

At this point, it is not clear when (and if) the network will restart.

Terra’s path to recovery:

After all these dramatic events, the founder of Terra came up with a proposal for a plan to reform the LUNA ecosystem.

He proposed resetting Terra network ownership to 1 billion tokens and redistributing.

It also proposed that this amount be redistributed between LUNA holders, UST holders, the community and other stakeholders in the Terra ecosystem.

We have previously published about the reform plan that can be referred to:

LUNA Update: Terra Founder Suggests a Solution as an Attempt to Restore and Fix the Project…Details Here

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Read also:

The CEO of Binance proposes a solution to Project Terra and explains why it has stopped trading on Binance

Founder of Cryptocurrency Exchange FTX Buys 7.6% Stake in “Robinhood” App


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