Investors dump Terra as LUNA 2 plunges 70% in two days

Since the relaunch of the Terra ecosystem via Terra 2.0 on May 28, the price of LUNA has dropped by about 70%.

According to Terraform Labs founder Do Kwon’s revival plan, new LUNA tokens (also known as LUNA 2) are being airdropped to investors who previously held LUNA Classic (LUNC), TerraUSD Classic (USTC) and Anchor Protocol UST (aUST) By.

According to data from CoinGecko, LUNA fell from $18.87 when it launched last Saturday to around $5.71 at the time of writing, a drop of about 69%.

LUNA/USD Chart: CoinGecko

At this stage, the sharp drop in prices seems to indicate a relative lack of confidence among investors in the progress of Do Kwon's reforms, with many investors tweeting that they are instead looking to recoup a small portion of their previously lost funds and get out of the project entirely.

Binance will start distributing LUNA to eligible users starting May 31 and listing the token for trading on its Innovation Zone, a trading zone dedicated to volatile and high-risk assets.

Some in the community plan to predict more bloodshed once Binance’s airdrop goes live.

They noted that Binance has “15.7 million liquid LUNAs that will be made available to users on Tuesday,” and said that investors who primarily use the Anchor Protocol will be looking to cash out as they have no real interest in the Terra ecosystem.

Popular figures in the field, such as Lark Davis, have also taken notice, telling his 988,000 followers on Twitter yesterday:

“No plans to buy LUNA 2.0, but if I get some airdrops on Binance, I will sell,” Lark Davis said.

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