With wild price swings, new cryptocurrency LUNA has become a gambler’s paradise

Three days after its launch, the new cryptocurrency LUNA shows massive price fluctuations, becoming a gamer’s paradise. After last Saturday’s airdrop, different crypto exchanges posted different prices.

According to data on Kraken, the new LUNA token opened at $17 and then fluctuated between $30 and $4.80. On the other hand, OKX listed LUNA with an opening price of $1 which then fluctuated between $5 and $20. On Tuesday, May 31, crypto exchange Binance also listed the new LUNA token. Although crypto is subject to great volatility, such wild swings back and forth are rare.

Speculators saw gains as LUNA surges as holder of previous version of LUNA and stablecoin UST recoups losses from Terra crash. Fadi Aboualfa, head of research at Copper prime brokerage, said:

“It’s pure gaming like crypto has never seen. One of the most important things about crypto is brand or marketing and community. Terra burned their community and their brand is tarnished Whatever they do here, it won’t help.

Will Terra 2.0 succeed?

Of course, it’s too early to say anything about the new Terra blockchain. However, looking at the massive meltdown earlier this month, analysts are broadly bearish for Terra 2.0. Speaking to Bloomberg, Thomas Dunleavy, senior crypto research analyst at digital asset data firm Messari, said:

“This initial volatility just shows me that Luna 2.0 is now a speculative asset and will likely be traded on the narrative until they can regain the trust of builders to bring fundamental value to the new ecosystem. I really doubt , really that they can do this with so many other interesting and well-funded alternatives.

Amid LUNA’s huge price fluctuation, the cryptocurrency has largely become “illiquid”. As a result, several holders of UST and the old LUNA also continue to hold the new crypto.

Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrency. He is continually in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thrillers and sometimes explores his cooking skills.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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