Binance Reduces Bitcoin-LUNA License as CZ Warns Against Algorithmic Stable Coins

Cryptocurrency CEO and most famous figure Changpeng Zhao also weighed in as one of cryptocurrency's greatest black swan moments. The well-known entrepreneur took to Twitter earlier Thursday to send up a storm, alerting his followers to the dangers of the Bitcoin market. "We need to both respect the market and be cautious." It rises and falls periodically. "Especially because it doesn't always make sense," he wrote before attempting an algorithmic stablecoin.

"We are in a new market with many innovations . The Algo stablecoin is one of them. When they're hot, they're all the rage. When they go down, it can be a vicious cycle. Some innovations will work, many won't," he wrote.

Terraform Labs has said it will implement a series of "emergency" actions to prevent the ecosystem from collapsing. If Terra is to make a comeback, she will need a major makeover after the last few days.

Binance has said it will take down its LUNAUSDT perpetual contract if the price falls below $0.005 since this morning's announcement. 0.00001 scale size LUNABUSD perpetual contract has also been launched.