Binance Airdrop This Week Could Cause a Bigger LUNA 2 Price Dump
The resuscitation of Terraform Labs' ecosystem and cryptocurrency has not gone as planned, and beneficiaries of the LUNA airdrop who choose to keep their tokens may face more suffering in the future.
Terra's network was restarted on May 27 with a fresh 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.
LUNA 2 has been heavily crashing since the airdrops began, according to BeInCrypto. 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 rebounded 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 pricing.
Binance is causing even more anguish.
According to Terra researcher 'Terra Watcher,' the world's largest exchange has yet to begin its airdrop to LUNA and UST Classic investors, but when it does, the sell-off might intensify.
1/8 If you're like me, you're waiting for the $LUNA genesis dump to end so you can buy without being dumped on.@Binance will unlock its huge LUNA airdrop on Tuesday morning, so I think we'll be clear to buy LUNA Tuesday afternoon.
— Terra Watcher (@lurkaroundfind) May 29, 2022
Exact figures, dates, and predictions. 🧵👇
According to a statement made over the weekend, Binance will begin its multi-year airdrop on Tuesday, May 31. Terra 2.0 will also be listed in its 'Innovation Zone,' a designated trading area for new high-risk, high-volatility tokens.
Binance can affect markets, according to the study, since it has 15.7 million in liquid LUNA, which will be available to consumers on Tuesday. Binance users are likely to dump the tokens since the exchange offers to stake via the Anchor Protocol, according to him.
Lark Davis, a crypto influencer, indicated that he will dump any LUNA 2 he receives from Binance in order to recuperate some of his losses.
Zero plans to buy $luna 2.0, but I will dump any airdrop if I get something on Binance.
— Lark Davis (@TheCryptoLark) May 29, 2022
The pain of Terra continues.
The massive price decline since the airdrops started a few days ago has prompted a barrage of memes, jokes, and general derision on crypto Twitter.
Few were delighted with the outcome, having lost thousands of dollars only to get a fraction of that loss in fresh tokens that had already been dumped by the majority of receivers.
A brief introduction to $LUNA 2.0 pic.twitter.com/YmnbgL59n3
— Devchart 👨🏻💻 (@devchart) May 29, 2022