Here’s how Binance could move the Luna market

Sahana Kiran
Source – Unsplash

After a dramatic downfall, Terra decided to jump back into the market with Luna 2.0. This revised version of the network made its debut over the weekend and the asset almost surged to $20. While this launch was highly anticipated by many, the community also looked forward to the airdrop that was scheduled with the launch. Unlike other exchanges, Binance decided to schedule the airdrop and allow trading of the brand new asset starting from 31 May 2022.

But what’s so special about this? Several in the community believe that Binance unlocking LUNA would move the market. With 15.7MM LUNA, Binance reportedly has the largest amount of the brand new asset which would soon be available to the public. At present, Kucoin is taking over as the exchange with the highest LUNA volume. But, Kucoin holds only 6.8MM LUNA in its address. The disparity between Kucoin and Binance seemed to be extremely high. As a result, several believe that Binance had the ability to move the market.

Twitter user, Terra Watcher, in a recent thread explains why Binance users are likely to dump the asset. It was pointed out that several users entailed TerraUSD [UST] on Anchor through Binance during the pre-attack snapshot. However, these users did not seem to have owned LUNA Classic [LUNC]. Hence, it was speculated that they wouldn’t care much about the revised version and go on dump it.

Terra Watcher further tweeted,

Binance lists LUNA under the “innovation zone”

Binance is home to numerous assets. Certain cryptocurrencies tend to be more volatile than the rest. Taking these assets into consideration, the crypto exchange rolled out the “innovation zone”, particularly for assets that are new and high-risk tokens. LUNA 2.0 seems to have found a way into this part of Binance.

The exchange wrote,

“Terra 2.0 (LUNA) is a new token that may pose a higher-than-normal risk, and as such may be subject to price volatility.”

An array of exchanges poured in support for LUNA 2.0, however, Binance seemed to be the only one that was extra cautious.