LUNA 2 falls 70% in two days after being listed

Since the re-launch of the Terra ecosystem via Terra 2.0 on May 28, the price of Terra (LUNA) has dropped by roughly 70%.

New LUNA tokens, also known as LUNA 2, are being airdropped to investors who previously held Luna Classic (LUNC), TerraUSD Classic (USTC), and Anchor Protocol UST as part of Terraform Labs founder Do Kwon’s revival plan (aUST). LUNA has dropped roughly 69 % from its opening price of $18.87(R293,74) on Saturday to around $5.71(R89) at the time of writing, according to CoinGecko data.

At this point, the sharp drop appears to indicate a lack of confidence in Do Kwon’s revamp moving forward, with many investors indicating on Twitter that they are instead looking to recover a small portion of their previously lost capital and walk away from the project.

Beginning May 31, Binance will begin a multi-year distribution of LUNA to eligible users, as well as list the token for trading via its Innovation Zone, a dedicated trading zone for volatile and high-risk assets.

Some members of the community, such as “lurkaroundfind,” who have stated their intention to purchase LUNA once the carnage is over, have predicted even more bloodshed once the Binance drop goes live. 

They stated that Binance has “15.7MM liquid LUNA, which will be available to users on Tuesday,” and that investors who primarily used the Anchor Protocol will look to cash out because they have no real interest in the Terra ecosystem.
Popular space influencers like Lark Davis have also noted this, telling his 988,000 Twitter followers yesterday:

“Zero intends to purchase $luna 2.0,  but I will dump any airdrop if I get something on Binance.”

LUNA 2 falls 70% in two days after being listed

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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