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Luna 2.0: Is the Terra Coin threatened with a crash?

 


The Terra-Coin 2.0 fell from just under 19 to 5 US dollars on Saturday. The Binance airdrop will follow on Tuesday. Is there another price crash for Luna?


“The Luna 2.0 Coin will show the world just how stupid crypto gamblers really are.” It may at least appear afterwards that this user on Twitter was right. The Terra token fell by a whopping 70% on Saturday after the airdrop.


Despite this movement, interest in the project seems enormous: in just 24 hours, there were 110,000 mentions of Terra 2.0 on Twitter and 8,600 posts per hour of Luna 2.0 .


Since well-known exchanges such as KuCoin, Bitrue, Huobi and Binance have expressed support for the new project, the critics seem to have fallen silent. Only OKX warned its users about Luna 2.0. The various token tickers that open the floodgates to fraudsters are also problematic. Gate.io is calling the new token LUNA , while Kraken is transitioning to LUNA 2.


However, the token could face further headwind tomorrow: Binance is carrying out the airdrop for its users, who, according to experience, want to cover their losses. The well-known crypto YouTuber Lark Davis has already announced that he wants to sell all his Luna 2.0 immediately:



The world's largest stock exchange is scheduled to begin the Terra 2.0 airdrop on Tuesday. Some believe Binance can correct the market lower with its 15.7 million Luna payout. The exchange had previously offered almost 20% interest on the stablecoin UST via the Anchor Protocol. Anchor was the largest DeFi platform on Luna 1.0.


“Many of the users never owned Luna or UST. You don't care about the project. Of course, these users sell the tokens immediately.”


Some users took the LUNA Airdrop as an opportunity to let their creative meme vein run free:

The LUNA airdrop was preceded by a vote by the Terra validators . They agreed on a hard fork of the chain with the Luna 2.0 token. All those who owned Luna before the crash will get the new token airdropped 1:1. Owners of the stablecoin UST (TerraUST), on the other hand, have a clear disadvantage: there are said to be just 0.033 Luna 2.0 tokens per previously held UST.


This situation is very annoying for all those who previously staked the UST with the belief in the 20% interest rate. Only 30% was/is there for the 1.0 holders this weekend - the rest will be paid out over 2 years.

In addition to the LUNA Airdrop, Phoenix Finance went on the market on Friday as a Terra DeFi platform. Phoenix Finance is intended to serve as a model for the previous DeFi projects. These have to switch to a new blockchain with Terra 2.0, as this is a hard fork. A hard fork is a change in the chain's protocol that is incompatible with the previous version.


Who is responsible for the Luna disaster?

Analysis company Nansen published a comprehensive analysis of the crash of the LUNA coin a few days ago. According to Nansen, not just one company was involved in the disaster, but several. Among other things, the name Celsius Network is mentioned as being partly responsible for the crash . Whether this activity was carried out with fraudulent intent can not be confirmed :


“The destabilization could have been caused by the decision of several companies. This could have happened as part of risk management or due to the difficult macroeconomic situation."


As a first step, the Luna Foundation Guard (LFG) has drawn 150 million UST from Curve Finance. Users eventually transferred more UST to Curve, with LFG pulling out more UST again. After a long back and forth, some large companies are said to have also removed UST from the pool.


After several transfers to the Ethereum chain, the UST were then exchanged for other stablecoins. One such company was Celsius, which declined to comment . Whether and how many companies acted with fraudulent intent will hopefully emerge in the future.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

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