Coinbase Cuts the Cord: Terra (LUNA) Network is Out

Quantum Internet

Developers and businesses interested in building on Terra (LUNA) APIs will have to look elsewhere, as Coinbase Cloud is discontinuing its support for the infrastructure.

The announcement was made through a post on the Coinbase Twitter account, in which the company cited consultation with the customers and ecosystem participants behind Terra as the primary reason for its decision.

This announcement comes amid rumors that Terra may be spinning off into a new chain with a revised minting policy and tokenomic design. It’s worth noting that Coinbase Cloud users will be pleased to know that the company has announced their plans to support customers through the transition from Terra to another platform. They have stated that they will provide all of the necessary tools and resources to help users make the transition with minimal disruption to their business processes.

While Coinbase Cloud has not specifically stated why they will not be supporting the new protocol, it is clear that they believe that it will not be successful.

This decision is sure to have a major impact on the future of Terra, and it will be interesting to see how the new chain develops in the coming months.

As reported by Wallstreetpit, on May 9, 2022 the crypto world was rocked by the sudden collapse of Terra (LUNA) and TerraUSD (UST). This was followed by a major sell-off of other cryptocurrencies, leading to widespread panic among investors.

Amid the chaos that saw LUNA drop over 99% from its May 6, $80 print- and UST lose its peg, TerraLabs founder and CEO Do Kwon stepped forward with a recovery plan to reestablish Terra blockchain. However, the measures proposed by Kwon not only have not had the desired effect but they have also been strongly rejected by the Terra community.

As such, various major exchanges including Binance, OKX, and others have delisted the LUNA/UST tokens.

Coinbase (NASDAQ:COIN) is expected to do the same this week with Terra’s stable and Wrapped LUNA (WLUNA-USD).

The exchange said however, that the delisting “will not affect customers’ access to UST & WLUNA wallets which will remain available for deposit and withdrawal functionality after the trading suspension.”

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