Following a successful airdrop last week, Binance, the world’s largest crypto exchange, announced that it will list the recently launched new LUNA token.
The token, however, will be listed in Binance’s “innovation zone,” which is a trading platform for new, high-risk tokens. Token trading will begin on May 31.
LUNA 2.0 had a volatile debut, falling as much as 80% in the first few hours of trading on Saturday. For the time being, the token appears to have stabilized and is trading around $5(R77.83).
Approximately 1 billion new LUNA tokens were airdropped to Terra Classic holders on the old Terra blockchain. The airdrop was supported by Binance and the majority of other exchanges.
Binance classifies LUNA 2.0 as a high-risk asset
Binance reiterated in its listing announcement that the Innovation Zone contains tokens that are far riskier than other cryptos. Elron Network (ERD), KAVA, and Sandbox are among the other tokens listed on the platform (SAND).
Terra 2.0 (LUNA) is a new token that may pose a higher-than-normal risk and, as a result, may experience price volatility.
As part of the initial disclaimer for trading in the Innovation Zone, Binance requires traders to complete a questionnaire.
Other exchanges appeared to be less cautious than Binance. Major exchanges such as OKX, Huobi, Kucoin, and Bybit have indicated that they have enabled regular spot trading for the token after raising sufficient liquidity.
Binance’s stance may also be influenced by CEO Changpeng Zhao, who has openly criticized the Terra crash, as well as founder Do Kwon.
The launch comes less than a month after the Terra crash
The launch of the new LUNA comes less than a month after Terra Classic lost nearly all of its value in a historic crash in May. This was largely due to the depegging of its stablecoin UST.
Terra 2.0 excludes the stablecoin, as well as the private wallets of Do Kwon, Terraform Labs, and the Luna Foundation Guard, the three entities widely blamed for the crash.
Despite this, LUNA Classic (LUNC) and UST prices increased following the airdrop.