The new LUNA cryptocurrency has had a choppy ride since its launch due to its wild price swings, making it a speculator’s haven.
Different crypto exchanges have been showing varying prices since the LUNA airdrop on Saturday.
According to Kraken data, the new LUNA token began trading at $17 and then fluctuated between $30 to $4.80. On the other hand, LUNA is listed on OKX with a $1 opening price before swinging between $5 to $20. Binance, a cryptocurrency exchange, listed the new LUNA token on Tuesday. Although crypto is subject to high volatility, such extreme swings in both directions are rare.
Speculators have been profiting as LUNA moves higher, while holders of the previous LUNA version and the UST stablecoin have been recouping losses from the Terra crash. Head of research at crypto prime brokerage Fadi Aboualfa Copper stated, “
“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.
Is Terra LUNA 2.0 going to be a success?
Though it’s too early to comment on the new Terra blockchain. However, analysts are largely bearish for Terra 2.0, based on the massive collapse earlier this month. Thomas Dunleavy, the senior crypto research analyst at digital-asset data firm Messari, told Bloomberg:
“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.”
LUNA has largely become “illiquid” as a result of its enormous price volatility. As a result, several UST and former LUNA holders have continued to hold the new crypto.