Binance Complete First Phase of Terra 2.0 Airdrop, Users Face Issues

UTC by Bhushan Akolkar · 3 min read
Binance Complete First Phase of Terra 2.0 Airdrop, Users Face Issues
Photo: Depositphotos

Binance successfully completed the LUNA airdrop on Tuesday, however, there have been reports of some mismanagement in the token distribution.

On Tuesday, May 31, the world’s largest crypto exchange by trading volumes, Binance, announced that it completed the airdrop for new LUNA tokens by Terra. The announcement comes as a number of other top exchanges participated in the airdrop.

“Binance has completed the Terra (LUNA) airdrop distribution to Terra Classic (LUNC) and TerraClassicUSD (USTC) holders. Users can confirm the receipt of these tokens in their spot wallets via the Distribution page in the User Center,”  reads the announcement.

However, for users to view their LUNA tokens in their spot wallets, users should ensure that they haven’t selected “Hide 0 Balances” option.  Although Binance allowed deposits for LUNA yesterday, it starts the withdrawals today on June 1.

Just a month before the Terra ecosystem collapse, crypto exchange Binance had launched the USTC staking facility. However, it decided to call off the feature after the Terra ecosystem collapsed. Also, users who staked their USTC via Binance staking before the staking are eligible for the airdrop.

But despite the successful airdrop by Binance, the overall token distribution by Terra hasn’t gone well! Terra has itself acknowledged the problem stating:

“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”.

LUNA Sees Wild Price Swings

Over the last three days since launch, the new LUNA token has witnessed wild price swings. data on Kraken shows that the LUNA price opened at $17. Within 24 hours, it witnessed a wild price swing between $30 and $4.80.

Similarly, the LUNA price on OKX opened at $1.80. Later, the cryptocurrency touched extremes of $20 and $5. Speaking to Bloomberg, Fadi Aboualfa, head of research at crypto prime brokerage Copper said:

“This is pure gambling like crypto has never seen. One of the most important things about crypto is the brand or marketing and community. Terra has burned its community, and brand is tarnished. Whatever they do here is going to be pointless.”

Other market analysts also shared a similar opinion.

“This initial volatility just shows to me that Luna 2.0 is now a speculative asset, and will likely trade on narrative until they can regain the trust of builders to bring fundamental value to the new ecosystem. I really, really doubt they can do that with so many other great, and well-funded alternatives out there,” said Thomas Dunleavy, senior crypto research analyst at digital-asset data firm Messari.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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