LUNA has plunged about 70% from its initial price of $18.87 and sits at roughly $5.71, according to statistics released on Saturday.
On May 28, Terraform Labs announced the launch of its new blockchain called Terra 2.0. Since then, LUNA has dropped its price by about 70% of its value.
New LUNA tokens are being airdropped to wallet addresses of investors who previously owned Luna Classic (LUNC), TerraUSD Classic (USTC), and Anchor Protocol UST (aUST), as part of Terraform Labs creator Do Kwon's revitalization strategy.
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An airdrop is when an investor receives tokens as a result of their ownership. Terra decided to compensate holders of the previous edition by airdropping free Luna 2.0.
On top of that, it seems as if Kwon’s revival plan will not see the light of day anytime soon due to LUNA's rapid drop. In fact, because of this, a number of traders are simply walking away from the project and trying to retrieve a tiny fraction of their initially lost funds.
The CEO of Binance, the world’s largest crypto exchange in terms of daily trading volume of cryptocurrencies, Chengpeng Zhao (CZ) posted a tweet on May 28 announcing that the platform would initiate a long-term distribution of LUNA to qualified users from the end of this month.
In addition, the platform will offer the token for trading through its Innovation Zone, a specialized trading zone where users may exchange new and unique tokens that are expected to have more volatility and entail a larger risk than other tokens.
Some members of the community who have stated their intention to acquire LUNA after the "carnage" is over, have forecast much more drama once the Binance drop officially launches.
Moreover, a number of well-known influencers on social media have shared their opinion about the situation. For instance, one of the crypto investors Lark Davis implied in his recent tweet:
On May 12, Kwon announced a plan to save Tera from the colossal drop. For instance, the minting capacity will be increased from almost $300M up to $1.2B by raising the base pool from 50M to 100M SDR.
In other news, earlier this month, former Binance executives launched a $100 million venture fund to explore the metaverse and increase cryptocurrencies’ acceptance in various developing countries such as Africa and Latin America.
