Luna 2 could fall even further due to Binance

After the not-so-successful restart of the Terraform Labs ecosystem and cryptocurrency, LUNA airdrop participants may face new problems.

on May 28, Terra rebooted its network with a new LUNA token. Over the next two days, holders of the old UST and LUNA (Classic) tokens received the new LUNA token, but they were not very happy about it.

The price of LUNA 2 has dropped significantly since the airdrop began. The token debuted and reached a peak price of just under $ 19, and the very next day, it fell by 78% to a low of $ 4.08. It managed to recover a bit due to trading in Asia, but overall, the token lost about 70% in just a few days.

It seems that only centralized exchanges that profit from trading fees have benefited from this situation. Binance, the world’s largest crypto exchange, is launching its airdrop, which could significantly affect LUNA’s already weak position.

According to Terra Watcher, a researcher at Terra, the massive asset drain may accelerate as soon as the exchange starts distributing tokens to LUNA and UST Classic holders.

Binance announced that it will launch its airdrop on Tuesday, May 31. In addition, the exchange will include Terra 2.0 in its «innovation zone».

According to the researcher, the 15.7 million liquid LUNA held by Binance can significantly change the situation on the market. After all, even more new tokens will appear in the hands of the audience, which, in theory, cannot have a positive impact on the price of the asset.

Crypto influencer Lark Davis has confirmed that he will be one of those who will get rid of any LUNA 2 he receives from Binance to recoup some of these losses.