After a rocky start, the new LUNA token rose over 40% on May 30. It hit $30 before crashing to $3.5 on the first day of trading, and now the token is making another run ahead of its Binance listing in May. 31.
It is against company policy for Binance to release listing information ahead of schedule. However, given the sensitive and timely nature of the LUNA 2.0 launch, he handed out a timeline detailing exactly when it will go live. The token will be live with LUNA/BUSD and LUNA/USDT trading pairs at 2022-05-31 06:00 (UTC).
The announcement was made on May 28, but it seems the excitement surrounding Binance’s listing is driving the Terra community to buy. LUNA hit a high of $9.40 today, May 30, before pulling back slightly to $8.40. As of 10 p.m., LUNA had continued to rise to $11.5 up 75%.
Buy the rumor, sell the news.
A buy the rumour, sell the news event may be on the cards as thousands of UST and LUNA holders could be ready to exit their positions as soon as their tokens are unlocked. Over $60 billion was wiped from the global crypto market cap when the Terra ecosystem collapsed, and many investors were hit hard. The price of $8.4 is a far cry from LUNA’s original all-time high of $118 and is an order of magnitude above the current LUNC price of $0.00013. For example, an investor who held 10 LUNAs before the attack would have had $780 on May 7.
As of May 16, the same tokens were worth just $0.002. After LUNA airdrops, they will hold $87.94 of LUNA. Will most investors cut their losses and sell to recoup their investment at 10 cents on the dollar or hold in the hope that the token can recover to all-time highs in the future?
Binance has created an easy-to-use conversion formula to calculate the LUNA airdrop, displayed below:
Pre-attack 1 auST = 0.01827712143 LUNA
Pre-attack 1 LUN = 1.034735071 LUN
Post-attack 1 USTC = 0.02354800084 LUNA
Post-attack 1 LUNC = 0.000015307927 LUNA
Given the timing of LUNA’s acquisition, this appears to be only 30% of the tokens investors will be entitled to. The remaining 70% tokens are vested, meaning they will be unlocked over a 2-year period. The vesting schedule means there is an artificial cap on how many tokens can be sold from unlock. Investors will not be able to sell all of their LUNA holdings until the end of the vesting schedule.