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LUNA2 clings to life after boost from Binance

By Monte Stewart


Cracked LUNA logo
New cryptocurrency LUNA2 got a boost from Binance on Tuesday after investors feared the coin's early death. - Photo: Shutterstock

New cryptocurrency LUNA2 showed signs of staying alive on Tuesday after getting a boost from the Binance exchange.

After raising fears of its early demise, LUNA2 – created following the collapse of what’s now called LUNA 1.0 – went on a roller coaster ride over a 24-hour period, rising more than 40% at one point, Cryptopotato reported. Binance enabled LUNA 2 trading after completing an airdrop to Terra Classic (LUNC) and TerraClassicUSD (USTC) holders. (An airdrop is a release of free coins or tokens to digital wallets.)

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 LUNA2 to US dollar (LUNA2/USD)


LUNA2 lost 132% of its value on the first day of trading, with the decline attributed to about 30% of airdropped tokens that were free to trade on the 28 May launch, reported. The plunge raised fears that LUNA2 could fail.

But multiple exchanges supported the Binance airdrop, allowing trading of the new token and sending its price soaring to $30 on some platforms before it retreated, according to Cryptopotato.

Terra Labs founder Do Kwon launched LUNA2 after LUNA 1.0 lost all of its value after the related TerraUSD stablecoin depegged from the US dollar.

Binance coin to USD (BNB/USD)

On Monday, LUNA2 lost more than 60% of its value.

“The only reason to buy $LUNA 2.0 is to qualify for the next airdrop of $LUNA 3.0 after it goes to zero like $LUNA 1.0,” veteran trader Luke Martin wrote on Twitter on Sunday.

Several Terra holders were upset that they received a smaller-than-expected number of coins in the airdrop.


62,958.15 Price
+4.440% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00


0.12 Price
+4.590% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872


0.54 Price
-0.100% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168


389.35 Price
+4.530% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

“Lost 50k on $LUNA and got an airdrop of $112,” tweeted a Twitter user known as Cryptocevo, saying the small amount was “like extra salt in the wound.”


Multi-year campaign

Terra Labs pledged to remedy the situation.

“We are aware that some have received less $LUNA from the airdrop than expected & are actively working on a solution,” tweeted Terra Labs. “More information will be provided when we have gathered all of the data, so stay tuned.”

Binance’s airdrop Tuesday began a multi-year LUNA2 airdrop campaign. But the exchange was not taking LUNA2’s longevity for granted.

“Cryptocurrency trading is subject to high market risk,” warned Binance in its news release on Tuesday’s airdrop. “Please make your trades cautiously. You are advised that Binance is not responsible for your trading losses.”

Markets in this article

Binance Coin / USD
562.46 USD
16.7 +3.100%
Binance Coin / USD
562.46 USD
16.7 +3.100%
LUNA2.0 to USD
0.4068 USD
0.0115 +3.000%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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