The situation was somewhat murky for the Terra community when Binance announced production restrictions for LUNA and UST assets had been implemented.
It is understood that the action is related to the state of the network which is congested, causing delays in processing transactions.
This restriction is only temporary as Binance will reopen asset production once the network returns to stability and the amount of delayed withdrawals is gradually reduced.
The withdrawal delay also means investors are not allowed to sell UST below $ 0.70.
At the time of writing, UST recorded a 49% price increase from its lowest level, $ 0.61 with the current trading value, $ 0.90.
For now the Luna Foundation Guard (LFG) reserves have seen an 85% collapse in value in the US dollar to $ 171.4 million - UST worth $ 86.82 is down 41% and AVAX is worth $ 84.5 million.
LFG has also acted to liquidate bitcoin reserves that began to accumulate since March 26, 2022 to support the value of UST pegged to the US dollar.
For the record, not only did Binance act to delay the issuance of LUNA and UST but other crypto exchange platforms such as Kraken and CoinList did the same.
