Last weekend has left a lot of Crypto.com users confused, when the mobile app all of a sudden started displaying prices way above the actual market price. An internal system tool detected incorrect prices for LUNA and some customers were able to exploit it into 30-40x profits.
Confusion Amid LUNA & UST Crash
Crypto.com is one of the few crypto exchanges that kept Terra’s (LUNA) trading lines open even after the beyond-repair crash of stablecoin UST, which is pegged to LUNA.
Soon after the internal tool detected the inaccuracy of LUNA prices, Crypto.com barred their customers from performing any trades. The glitch took 59 minutes, during which some clients got away with massive profits. Shortly after, Crypto.com CEO Kris Marszalek explained that the technical glitch appeared only on the mobile app and not the exchange. To get into details about the glitch, Marszalek said ‘The root cause was a combination of multiple external factors, for instance, tick size changes due to Luna death spiral, withdrawal & entire Luna chain stopping, leading to price dislocations’.
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.
— Kris | Crypto.com (@kris) May 13, 2022
Cronos (CRO) In The Red Too after Reaching ATH
Surprisingly, this comes only a month after Terra (LUNA) reached its ATH at $119 on April 5th. However, Kris Marszalek also issued a buyback option for any user who has traded during those 59 minutes at the current LUNA price, which is $0.0001795 at this time.
Additionally, Marszalek gave $10 in Cronos (CRO) as a gesture of goodwill. It is worth noting that Crypto.com’s native token Cronos is also experiencing hard times – Cronos (CRO) is trading at $0.199937 at this time, according to CoinGecko. CRO achieved its pinnacle 6 months ago and was trading at $0.96 during the period when Crypto.com bought naming rights to Staples Center.
On The Flipside
Last week, Terra halted the blockchain network to prevent it from governance attacks. Even though a Do Kwon’s rescue plan managed to push UST back to $0.84, the patch was short-lived and UST is floating just a little above its demise at $0.10, bouncing back from an all time low of $0.04495 just 4 days ago.
2/ It has been inspiring to partake in the dynamic discourse regarding the best next steps for Terra. Taking feedback from the community and thoughtful proposals, I would like to suggest the following for the path forward.https://t.co/E13VI8bkLh
A thread on our reasoning:
— Do Kwon (@stablekwon) May 16, 2022