Binance to list Terra (LUNA) 2.0, but there is a problem
Binance, the world’s largest cryptocurrency exchange, said it will list the newly launched token LUNA after a successful airdrop last week.
But the token will be listed in Binance’s “innovation zone,” a new high-risk token trading platform. Trading in tokens will open on May 31.
The launch of LUNA 2.0 has been somewhat choppy, dropping as much as 80% in the first few hours of trading on Saturday. The coin appears to have stabilized at the moment, and is trading at around $5.
About 1 billion new LUNA tokens were dropped to their holders on the old Terra blockchain, now called Terra Classic. Binance and most other exchanges have supported airdrops.
Binance lists LUNA 2.0 as a high-risk asset
In announcing the listing, Binance reiterated that the innovation area consists of tokens that pose much higher risks than other cryptocurrencies. Other tokens included in the platform include Elron Network (ERD), KAVA, and Sandbox (SAND).
Terra 2.0 (LUNA) is a new token that may pose higher than usual risks and therefore may be subject to price volatility.
Binance requires traders to complete a survey as part of the initial disclaimer for trading in the innovation zone.
Other exchanges do not appear to be as cautious as Binance. Communications from major companies such as OKX, Huobi, Kucoin and Bybit indicate that they have enabled regular spot trading of the token after raising sufficient liquidity.
Binance’s position may also stem from CEO Changpeng Zhao, who has been highly critical of the Terra incident, as well as founder Do Kwon.
The launch comes in less than a month since the crash of Terra
The new LUNA comes less than a month after the Terra Classic lost nearly all of its value in a historic accident during the month of May. This was largely a result of the depegging of its stablecoin UST.
Terra 2.0 does not include stablecoins, and it also excludes the private wallets of Do Kwon, Terraform Labs, and Luna Foundation Guard – the three entities widely responsible for the crash.
However, prices for LUNA Classic (LUNC) and UST rose after the airdrop.
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