Altcoins: Terra's Luna 2.0 Price - Confusion Around LUNA's Successor May Affect Price Of This Crypto | FXStreet

Centralized Exchanges (CEXs) Remain A Promising Avenue For Users To On-Ramp Cryptocurrency As Opposed To Decentralized Exchanges (DEX)
  • LUNA 2.0 price plummets as skepticism increases, raises concerns of a crash similar to LUNA (now LUNA Classic) fiasco.
  • The controversial Terra token not offered for trading across Korean exchanges, but some investors are still bullish on LUNA 2.0.
  • LUNA 2.0 price posted 9% losses, analysts have a bearish outlook on the Terra token.

Despite LUNA 2.0 price drop, some investors in the crypto community remain bullish on Terra’s new token. Other experts raised concerns about a potential colossal crash of LUNA 2.0, similar to what happened with the LUNA Classic and UST.

LUNA 2.0 price nosedives, witnesses massive volatility

LUNA 2.0 price dropped 9% overnight, and Terra’s new token continues to witness extreme volatility. There is growing skepticism over LUNA 2.0’s sustainability as investors expect a similar outcome as LUNA Classic (previously known as LUNA) and TerraUSD (UST) crash.

The rising volatility in LUNA 2.0 has rekindled concerns among analysts and investors. Korean cryptocurrency exchanges have not offered any trading services supporting Terra’s new token, LUNA 2.0 in response to these concerns.

A Seoul-based economist said,

Financial authorities cannot protect investors in the cryptocurrency industry, as there are no regulations or laws to do so. It is more like gambling that comes with an inherent risk.

LUNA 2.0 token can be traded on major overseas exchanges like Binance, OKX, Kraken, Bybit.

Cryptocurrency exchanges support LUNA 2.0 listing

Jesse Powell, CEO of Kraken, defended LUNA 2.0 listing citing client demand. Powell revealed that switching cost for users is low and people tend to want all cryptocurrencies on one platform for their capital efficiency, synergies and convenience. Powell believes withdrawing support for one cryptocurrency could cost the exchange an entire account. Powell further emphasized that listing a cryptocurrency does not mean the exchange endorses it.

Binance CEO Changpeng Zhao (CZ) recently voiced skepticism around the relaunch of the Terra blockchain and LUNA 2.0. Nevertheless, Binance is actively supporting Terra’s airdrop and Do Kwon’s revival plan, and LUNA 2.0 is listed for trade on the exchange’s platform.

South Korean authorities investigate Do Kwon and Terraform Labs

Despite the launch of Terra’s LUNA 2.0, South Korean authorities have continued an investigation into Terraform Labs, and CEO Do Kwon. Authorities are investigating potential price manipulation across multiple cryptocurrency exchange platforms and the listing process of LUNA.

Former Terra employees reveal Do Kwon was behind the failed stablecoin project Basis Cash. The algorithmic stablecoin was launched in 2020 and quickly flamed out, plummeting from $1 to $0.30 in January 2021.

Despite LUNA 2.0 price volatility, experts are bullish

@DarkCryptoLord, a leading cryptocurrency analyst and trader, believes LUNA 2.0 price offers a profit making opportunity. The analyst believes the setup is ideal for a quick trade.

@MartiniGuyYT, crypto YouTuber and founder of Crypto Saving Expert, told his 133,000 subscribers that he bought a small bag of LUNA 2.0 token to “play the game” and the analyst is keen on making scalp trades with the ongoing price swings.

Akash Girimath, crypto analyst at FXStreet, believes it is a good bet to buy LUNA 2.0 token after the airdrop. Despite the price volatility and wild swings, the analyst has identified a bullish setup in the LUNA 2.0 chart. For more information, watch this video:

Centralized Exchanges (CEXs) Remain A Promising Avenue For Users To On-Ramp Cryptocurrency As Opposed To Decentralized Exchanges (DEX)

FXStreet News

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market and was founded in 2000.
 
The website offers a wide range of tools and resources: 24/5 currency news, real-time economic calendar, advanced rates and charts, educational webinars, analysis reports, forecasts, Learning Center, newsletters, industry services, FX customizable studies...
 
As its distinctive trademark, the portal has always been proud of its unyielding compromise to provide neutral and unbiased information and to enable its users to take better and more confident decisions. FXStreet has managed to gain the collaboration of the entire Forex industry, from individual professionals and small companies right up to Forex Brokers and Investment Banks. FXStreet covers the FX Market 24/5: an expert team of journalists, traders and economists picture what the market is doing and what is happening as it happens.