Binance Airdrop Could Lead To A Bigger LUNA 2 Price Drop

The resuscitation of Terraform Labs’ ecosystem and cryptocurrency has not gone as planned, and recipients of the LUNA airdrop – Binance Airdrop who intend to keep their tokens may face more suffering in the future.

Terra’s network was restarted on May 27 with a new genesis blockchain and the LUNA coin. The new LUNA token was airdropped to holders of the old UST and LUNA (Classic) tokens over the weekend, but there was little reason to rejoice.

Since the airdrops began, LUNA 2 has had a lot of crashes. The token began at a high of slightly under $19 before plummeting by 78 percent to $4.08 on May 28. During the Monday morning Asian trading session, it recovered marginally to trade at just over $6, although the token has been shattered by about 70% in just a few days.

As the sell-off accelerated, the only winners appear to be the centralized exchanges, which profited from trading fees. As it prepares for its own airdrop, one of those exchanges, Binance, may have a stronger impact on short-term LUNA prices.

Binance is causing even more anguish

The world’s largest exchange has yet to initiate its airdrop to LUNA and UST Classic holders, but when it does, the sell-off could accelerate according to Terra researcher ‘Terra Watcher.’

Binance will begin its multi-year airdrop on Tuesday, May 31 according to an announcement over the weekend. It will also list Terra 2.0 in its ‘Innovation Zone,’ a dedicated trading area new high risk and high volatility tokens can be traded.

The researcher said that Binance can move markets because it has 15.7 million in liquid LUNA which will be available to users on Tuesday. He added that Binance users are likely to dump the tokens because the exchange offered staking through the Anchor Protocol.

Many users had UST on Anchor via Binance at pre-attack snapshot. Many of these users never owned old LUNA and don’t care about new LUNA. Yeah, they’re gonna dump.”

Crypto influencer Lark Davis confirmed that he would be one of those dumping any LUNA 2 he gets from Binance to recoup some of those losses.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News