So, if you held any amount of Terra Luna on your cryptocurrency portfolio, what could the 100% wash out of the token could mean for you?
Well, while the de-listing of the token indicates that while there cannot be new purchases of the token, existing buyers can sell their holdings or transfer their value.
But can investors not sell their holdings?
Smit Khakhkhar, co-founder and CTO of CoinCrunch India told Business Today, “One of the good things about crypto is that investors can transfer their holdings across exchanges. This means, even if the crypto has been de-listed on some exchanges, investors can transfer them to exchanges where they are still listed and then exit their positions.”
Terra Luna is down 100% as per data from CoinGecko. And because of the drastic crash, cryptocurrency exchanges have begun delisting the token. After Terra Luna’s meteoric crash, international crypto exchanges like Binance and Crypto.com have de-listed the cryptocurrency.
In addition to that, Terra Luna has also been delisted from the India-based cryptocurrency exchanges like CoinDCX and WazirX.
So why did exchanges do this?
Smit Khakhkhar, co-founder and CTO of CoinCrunch India told Business Today, “The exchanges have de-listed Terra Luna to avoid new investors getting into the cryptocurrency.”
Khakhkhar further clarified, “There is a frenzy in the markets, since the token has gone down so much, new investors are buying it in hopes that the cryptocurrency might boom up in value.”
The CTO then further lauded the exchanges for this move. He said, “This is a welcome move by the exchanges because it aims at protecting investors.”
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