Illustration by Alex Castro / The Verge
As the Terra crisis draws on, some of the largest cryptocurrency exchanges in the world have begun to delist Terra’s UST stablecoin and its linked Luna token, citing a need to protect users from risk.
Binance, the largest cryptocurrency exchange by trading volume, halted the trading of Luna and Terra on Thursday. The OKX exchange — one of the top 10 by volume — took the same action shortly afterward. The FTX exchange and other smaller exchanges continue to list and trade the Luna and UST tokens.
The delistings come in response to a broader collapse in the economics of the Terra project. After the UST stablecoin fell well below its dollar peg on May 9th, an algorithmic process meant to balance the price at close to $1 triggered…