Three different exchange-traded product (ETP) issuers announced they were suspending trading or issuing shares in Luna-related investment vehicles after the cryptocurrency lost 99.98% of its value over the course of a week.
VanEck, Valour and 21Shares, all of which offer Luna ETPs in Europe, suspended the issuance of shares, citing the network's recent problems, which include two complete shutdowns of the supposedly decentralized network. All three products lost nearly 100% this week.
VanEck told investors Friday that it will temporarily suspend issuing and redeeming shares in its VanEck Terra ETN (exchange-traded-note), which trades in several European countries, citing the "loss of most of its value and the shutdown of the Terra network."
The New York-headquartered company added that it "is unable to conduct transactions in Luna over the Terra network. Therefore, it is technically not possible to accept creations and redemptions for VanEck Terra ETN."
Similarly, Valour said it is suspending trading of its Valour Terra (LUNA) SEK product, which trades on the NGM exchange in Scandinavia. The company cited "high volatility and prevailing uncertainty around the Terra ecosystem.
Valour added that it is looking to "make a market through the market maker as soon as it is possible and permitted." Valour is a unit of Canada-listed DeFi Technologies Inc.
As for Switzerland-based 21Shares, a company spokesperson told CoinDesk that with the LUNA network "operating with interruptions and inconsistencies, 21Shares is unable to provide creation and redemption operations and is suspending the listing of the Terra ETP. We will continue to closely monitor this rapidly evolving situation on the underlying."
21Shared warned investors Thursday, "If LUNA's price falls to zero, it will be reflected in the indexed products and the value of the tracker fund will also fall to zero. Because LUNA has low prices and high volatility, it is likely that exchange spreads will widen further, which may ultimately lead to delisting by the exchanges."