Three days since launch and the new LUNA cryptocurrency is exhibiting massive price swings becoming gamblers’ paradise. After the airdrop last Saturday, different crypto exchanges have been showing different prices.
As per data on Kraken, the new LUNA token opened at $17 and then swung between $30 and $4.80. On the other hand, OKX listed LUNA with an opening price of $1 which then swung between $5 to $20. On Tuesday, May 31, crypto exchange Binance also listed the new LUNA token. Although crypto is subject to large volatility, such wild swings in both directions are rare.
Speculators have been booking gains as LUNA moves higher while the holder of the previous LUNA version and UST stablecoin are recovering the losses from the Terra crash. Fadi Aboualfa, head of research at crypto prime brokerage Copper said:
“This is pure gambling like crypto has never seen. One of the most important things about crypto is the brand or marketing and community. Terra has burned its community, and brand is tarnished. Whatever they do here is going to be pointless.
Will Terra 2.0 Succeed?
Of course, it’s too early to say anything about the new Terra blockchain. However, looking at the massive collapse earlier this month, analysts are largely 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 to me that Luna 2.0 is now a speculative asset, and will likely trade on narrative until they can regain the trust of builders to bring fundamental value to the new ecosystem. I really, really doubt they can do that with so many other great, and well-funded alternatives out there.”
Amid the massive price swing in LUNA, the cryptocurrency has largely turned “illiquid”. As result, several holders of UST and previous LUNA continue to hold the new crypto as well.