LUNA2 clings to life after boost from Binance
Updated
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, BusinessToday.in 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.
“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.”
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