Many Crypto.com users are confused by the events that occurred over the weekend. The app’s mobile version suddenly displayed asset prices much higher that their market value. An internal tool discovered incorrect prices for LUNA. Some customers were able take advantage of this to generate 30-40x their profits.

There is a lot of noise about this. Let me make some comments. We were quoted prices between 30-40x above the market Luna prices during 59 minutes due to a technical glitch in the retail app, but not the exchange. https://t.co/XMjSnWQ6aO

— Kris | Crypto.com (@kris) May 13, 2022

Confusion Amid LUNA & UST Crash

Crypto.com, one of the few crypto-exchanges that has (LUNA), operations online in the wake of the severe crash of UST stablecoin.

Crypto.com banned customers from making any trades shortly after their internal tool discovered the error in the price for LUNA. It took 59 minutes for the glitch to be detected. During that time, some clients were able to make huge profits. Kris Marszalek (Crypto.com CEO) later clarified that the technical problem only occurred on the smartphone app and not on the exchange. 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 available in Red after reaching ATH

Surprisingly though, the abrupt collapse of the algorithmic stabilitycoin happens just one month following Terra (LUNA’s ATH at $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 at the time of writing, for any users who traded assets in the 59 minute period.

Marszalek gave $10 in Cronos ($CRO) to the recipient as a gesture. It is worth noting that Cronos, Crypto.com’s native token, is also experiencing hard times, with CRO trading at $0.199937 at press time, according to CoinGecko. CRO hit its peak 6 months ago when it traded at $0.96, after Crypto.com purchased the naming rights for the Staples Center.

Flipside

Terra stopped its blockchain network last week to protect itself from governance attacks. Although Do Kwon’s rescue plan managed to push the UST back up to $0.84, the patch was short-lived and the UST is hovering on a knife’s edge at $0.10, having bounced back from an all time low of $0.04495 just 4 days ago.

2/ I found it inspiring to participate in the lively discussion about the next steps for Terra. Taking feedback from the community and thoughtful proposals, I would like to suggest the following for the path forward.https://t.co/E13VI8bkLhA thread on our reasoning:

— Do Kwon (@stablekwon) May 16, 2022

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