LUNA 2.0 price Surges Following Listing Announcement on Binance
Binance announced on Tuesday that the first stage of airdropping new Terra Luna (LUNA) tokens to Terra Luna Classic (LUNC), TerraUSD (USTC), and AnchorUST holders had been completed (aUST).
- Binance announces the completion of the LUNA 2.0 airdrop for Luna holders on Binance Wallet.
- Binance was the first to announce its support for Terra Luna after the vote resulted in a 65 percent vote in favor of a new chain.
- The distribution was based on snapshots of token holders taken at LUNC block height 7,544,910 at 14:59:37 on May 7, 2022, UTC, and block height 7,790,000 at 16:38:08 on May 26, 2022, UTC.
The timings of this listing have been confirmed now that Luna 2.0 has launched.
According to Binance, users received new LUNA tokens based on the Terra developers’ compensation scheme as outlined in the proposal approved by the Terra community:
Pre-Attack 1 aUST = 0.01827712143 LUNA
Pre-Attack 1 LUNC = 1.034735071 LUNA
Post-Attack 1 USTC = 0.02354800084 LUNA
Post-Attack 1 LUNC = 0.000015307927 LUNA
One aUST was worth $1.24 before the attack, while a LUNC was worth around $75. Following the attack, one USTC was worth $0.0632 and one LUNC was worth $0.0001434.
At the time of writing, a single LUNA token was worth $9.25. According to Terra’s reformation plan, approximately 30% of LUNA tokens were distributed on the spot, while the remaining 70% will be distributed monthly on a vesting schedule beginning later this year.
The airdrop was also available to users who staked their USTC via Binance Staking before the attack. USTC assets held by users were staked on-chain, with aUST serving as the yield-bearing token. Binance had just launched USTC staking a month prior and had quickly discontinued the program.
Binance, the centralized exchange, announced in a blog post that LUNA/USDT and LUNA/BUSD pairings will be added to the Binance Innovation Zone on May 31 at 5:30 AM UTC.
Then, in a separate post, it was announced that withdrawals for Luna 2.0 would begin on June 1 at 6 a.m. UTC. Deposits for Luna 2.0, on the other hand, are now available.
As the Binance listing date approached, the price of Luna 2.0 increased. In the 24 hours since the listing, it has increased by 38%.
The report went on to say that “Terra 2.0 (LUNA) is a new token that may pose a higher-than-normal risk and, as a result, may be subject to price volatility.”
Binance has stated that, as part of the Terra Classic chain, it will continue to support Luna Classic. This will be the Luna coin that was left over after the Terra 2.0 migration.
However, the Luna Classic listing does not appear to be having the desired effect on many holders. As of May 31, the Luna Classic price has dropped 22% in the last 24 hours.
Despite the success of the Binance airdrop, it appears that token distribution for crypto enthusiasts with Terra assets in self-custodial wallets did not go as planned.
According to Terra developers, some users received fewer LUNA than expected as a result of the airdrop, and they are currently working on a solution. A LUNC pricing error appears to have caused another exploit on the same day, potentially draining the Mirror protocol, which is based on Terra, of all its funds.