FTX announces delisting of Anchor Protocol, but token rises in price
15:32, 6 September 2022
FTX, the cryptocurrency derivatives exchange, will delist Anchor Protocol (ANC) in a few days’ time. Surprisingly, however, the crypto has risen in price in response. According to CoinMarketCap, the crypto is up by 3.43% to $0.09861 as of 6 September 2022.
The exchange stated not only that it will delist ANC tokens, but also that ANC spot and future markets will cease activity on 12 September. ANC deposits and withdrawals will also be suspended.
Link between Anchor Protocol and Terra
There is a link between ANC and Terra (LUNA), as Anchor Protocol is also a lending and borrowing protocol offering up to 19.5% yield on stablecoin deposits. Therefore, lenders can deposit their TerraClassicUSD (USTC) and earn rates on their investments.
Borrowers can also turn their LUNA collateral into productive assets.
Infamously, the stablecoin TerraUSD (UST) lost its peg to the US dollar in May 2022, which led to the dramatic drop of its sister token, LUNA, as well. This led to the creation of USTC, the original depegged stablecoin, and a new UST. The same also applies to LUNA.
Deposits and withdrawals of LUNC and USTC will also be stopped on FTX on 12 September.
FTX CEO: Crypto is ‘coming back’
In September 2022, Sam Bankman-Fried, CEO of FTX, said he thinks crypto is “coming back” after the current bear market. The FTX CEO made his comments in an interview with Bloomberg UK.
Bankman-Fried argued that a lot of what is happening in crypto is linked to the macro-economic environment, saying: “If we see the market crash again, we will see crypto crash along with it”.
However, the same can be said for a recovery in the markets as he believes this would, similarly, lead to a crypto recovery.
Bankman-Fried said the crypto winter has “flushed out a lot of the things that needed to be flushed out in the crypto space anyway.”
He said he did not get “super nervous” in May 2022 when the crypto market started to see a “meltdown”.
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