Crypto.com Reverses LUNA Trades Made During Friday 13th Glitch
The events of the last weekend have left a lot of Crypto.com users confused. The mobile app suddenly started displaying asset prices as being much higher than their actual market price. An internal system tool detected incorrect prices for LUNA, which some customers were able to exploit to turn 30–40x profits.
A lot of noise on this, so let me comment.
For 59 minutes we were quoting prices 30–40x ABOVE market prices for Luna due to technical glitch that affected the retail app and NOT the exchange. https://t.co/XMjSnWQ6aO
— Kris | Crypto.com (@kris) May 13, 2022
Confusion Amid LUNA & UST Crash
Crypto.com is one of the few crypto exchanges that kept Terra (LUNA) operations online following the extreme crash of the UST stablecoin, which is pegged to LUNA.
Soon after the internal tool detected the inaccuracy in the price of LUNA, Crypto.com barred their customers from performing any trades. The glitch lasted 59 minutes, during which some clients made away with massive profits. Crypto.com CEO Kris Marszalek later explained that the technical glitch only appeared on the mobile app, not on the exchange itself. Goin into more detail, 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) also in the Red After Reaching ATH
Surprisingly, the sudden collapse of the algorithmic stablecoin comes just one month after Terra (LUNA) reached its ATH of $119 on April 5th. In the aftermath of the glitch, Kris Marszalek has issued a buyback option at LUNA’s current price, which is $0.0001795
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