LUNA token relaunch Kicks Crypto Hype into High Gear

LUNA token relaunch Kicks Crypto Hype into High Gear

If you need a reminder of memories are short in the world of digital currency, look no further than the relaunch of Luna just after two weeks it played a key role in the downfall of the TerraUSD Blockchain ecosystem that cost investors billions.

 

Excitement is already growing around the LUNA token, which is being reissued to earlier investors as a part of an application approved on Wednesday. The application seeks out ways to rescue the network after Luna’s associated stable coin, TerraUSD, also known as UST, lost its one-to-one peg to the U.S. dollar and started a downfall in digital asset prices.

 

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Under the approved plan, the original blockchain will split off to be known as Terra Classic, while Luna, which plunged to zero this month, will be renamed Luna classic with the ticker (LUNC). The brand new TerraUSD blockchain will start trading a token under the existing Luna name and ticker, and won’t include the UST stable coin. This new Luna will be circulated to previous investors of Luna and TerrUSD in a so-called airdrop on Thursday.

 

Multiple crypto exchange platforms, like, Coinbase Crypto Exchange, Kraken digital asset exchange, and Binance exchange are planning already to list the token, while crypto advocates are predicting that the surge will “go to the moon”. This isn’t very surprising, because the crypto trading world often follows the classic “loss-chasing” patterns, wherein traders try to push the success of a new coin hoping to eventually recoup their past losses.

 

 

Millions of investors lost money earlier this month from the TerraUSD collapse, with LUNA and UST having both plunged to zero at some point. Following the announcement, the price of Luna increased about 18% on Wednesday.  As per Bloomberg, the price still was less than a fraction of a cent. It traded at more than $ 100 in April.

 

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Whether the price of the new Luna coin will “pump” remains to be seen. Apart from retaining existing projects on the Terra blockchain, it will need some support from major exchanges. Listing to a major exchange would provide more liquidity for the token, which in turn can lead to price appreciation. Crypto exchange huboi and OKX commented that they would support the relaunch of Luna, while Binance exchange said that it is working closely with the Terra team to provide impacted Binance users the best possible solution.

 

Despite the hype, blockchain data firm, Nansen noted that flows of wrapped Luna token, a version of Luna on the Ethereum blockchain, have shown “no evidence” of so-called widespread support yet. The trading volume of wrapped Luna tokens on Ethereum and Luna token’s flow going from Ethereum to Cosmos, the network where Terra’s network is built, has been “scant” since the announcement, according to Andrew Thurman, who’s in charge of content at Nansen.

 

“That might change as word spreads, but right now it looks like the market is tepid on Terra,” Thurman said.