On May 13, Crypto.com abruptly barred users from trading after an
internal tool detected the system quoting incorrect prices for LUNA.
Crypto.com was one of the few crypto exchanges to keep LUNA trades open as Terra’s death spiral saw an unrecoverable price crash
of LUNA and stablecoin UST. However, a technical glitch on Crypto.com’s
mobile application allowed users to get away with a 30-40x profit on
LUNA trades momentarily.
On Friday, Crypto.com abruptly barred
users from trading after an internal tool detected the system quoting
incorrect prices for LUNA due to some error. Just when Crypto Twitter started raising concerns about trade reversals
on the exchange, Kris Marszalek, CEO of Crypto.com, revealed details
about a glitch that allowed users to make away with massive profits.
According to Marszalek, users who traded “during those 59 minutes”
are eligible for a buyback option at the market price for LUNA tokens,
which has since fallen to $0.0004685 at the time of writing. It is
important to note that LUNA achieved its all-time high market price of nearly $120 on April 5.
Marszalek noted:
“The
root cause was a combination of multiple external factors (tick size
changes due to Luna death spiral, withdrawals & entire Luna chain
stopping) together leading to price dislocations that should typically
be caught by index pricing, but weren't.”
After a day’s review on the LUNA trade debacle, Marszalek informed that “all user accounts have been re-enabled.”
While Crypto.com reversed the LUNA transactions, the company has offered $10 worth of its in-house token Cronos (CRO) as a goodwill gesture for affected investors.
Related: Breaking: Terra blockchain officially halted following LUNA price collapse
With
LUNA’s price collapsing more than 99%, validators for the Terra
blockchain officially halted the network aiming to prevent governance
attacks.
The validators are expected to relaunch the network only after implementing a new patch to disable further delegations.
