LUNA 2 saw its price quickly jump to $11.33, anticipating Binance’s airdrop. However, the token price has since receded to around $8.26.
The price of LUNA 2, the corresponding native token to the newly revamped Terra blockchain, recently surged 90% overnight to an intraday high of $11.33. This spike comes ahead of Binance’s planned airdrop of the digital currency. The leading crypto exchange chose to delay the airdrop by two days following the Terra blockchain rebirth.
Since its massive price spike, LUNA 2 has since retraced and is changing hands at around $8.26 as of press time. Despite this price recession, the token is still up 35% over the last 24 hours. However, since the new Terra network launched over the weekend, LUNA 2 price is down overall by 56% from its opening price of $18.87.
The Good: Terra Community Members React to LUNA 2 Initial Price Jump with Glee
Members of the Terra community reacted to the new LUNA’s price jump. Some even posted screenshots of LUNA trading at the lofty price of $12 on the MEXC Global exchange. One community member, “Bull of Binance Street” with the Twitter username @bull_bnb captured the surging moments as they pointed out that LUNA jumped $2 in just 30 minutes. The ecstatic post read:
“In 30 minutes you apes pumped it 2 more dollars am loving it. I love you do Con. @crypto_bitlord7 you should’ve nought with me bro. this new $luna on fire”
Accompanying the Twitter post was a screenshot of the LUNA/USDT bullish bar appearing to be in the middle of a strong run. In addition, the image suggested little to no sign of possible price retracement at the time due to the almost non-existent candle wicks.
Binance is one of several crypto exchanges supporting the relaunch of the Terra ecosystem. Furthermore, the Bahamian-based exchange looks to launch a multi-year airdrop campaign to eligible users starting today. In addition to this agenda, Binance will also make LUNA trading pairs available to its more than 28.6 million active users.
The Bad: LUNA 2 Price to Flounder Short-Term Due to Market Correction, Observers Say
However, some observers are predicting that LUNA’s price will decline markedly after Binance’s airdrop. The observers maintain this as a very strong possibility, especially in the short term. According to them, the reason for this is that investors are dumping the tokens upon receiving the airdrop as they try to recoup some of their earlier losses.
Furthermore, the observers state that Binance has 15.7MM liquid LUNA up for grabs. They concluded that investors who used the Anchor Protocol are merely seeking to cash out as they have no real interest in the Terra ecosystem.
The Ugly: Several Investors Dissatisfied with Airdrop Sum so Far
A good number of investors are already venting their frustration over the way Terra is handling some of its other airdrop procedures. Much of this anger stems from the meager amount Terra has airdropped to them compared to their initial loss. According to one of such aggrieved investors, “lost 50k on $LUNA and got an airdrop of $112 Prefer the complete rug. That small airdrop is like extra needle salt in the wound.”
However, Terra acknowledged the issue and promised to find a solution. The blockchain also took to Twitter to issue a statement that read:
“We are aware that some have received less $LUNA from the airdrop than expected & are actively working on a solution. More information will be provided when we have gathered all of the data, so stay tuned.”
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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