LUNA, UST Meltdown Forces VanEck and 21Shares to Suspend Trading of 2 Terra ETPs
The crypto market meltdown surrounding the depegging of UST to as low as $0.1331 from $1, and the subsequent crash of LUNA to $0.00001675 from $80 almost a week ago, has spilled over to Wall Street as the trading of two Terra-based ETPs has been suspended until further notice.
According to a report by Bloomberg, ‘the creation and redemption of shares of two Terra exchange-traded products issued by VanEck and 21Shares were suspended on Friday’ due to the meltdowns of LUNA and UST in the last week. The two products affected are 21Shares’ Terra ETP and VanEck’s Terra ETN.
21Shares and VanEck Will Continue Monitoring the Situation Surrounding LUNA and UST
Hany Rashwan, Chief Executive Officer and co-founder of 21Shares added that the company was monitoring the ever-evolving situation surrounding LUNA and UST. He said.
We will continue to closely monitor this fast-evolving situation on the underlying [assets]. The Luna network is currently operating intermittently and inconsistently producing blocks and cannot operate normally. Therefore transactions can still be performed but in a disrupted environment.
Similarly, representatives at VanEck gave the following reasons why trading of the Terra ETN was halted.
During the past days Luna has lost most of its value as a result of the efforts to defend the UST peg to the dollar. The low value of Luna caused issues and risks for the Terra network which trigger the decision by Terra Validators to halt the network. At this point it is unclear when (and if) the network will be restarted.
VanEck is unable to conduct transactions in Luna through the Terra network. Therefore, it is technically not possible to accept creations and redemption for VanEck Terra ETN. VanEck will continue to provide updates as necessary.
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