MEXC Global has committed to a month-long repurchase and burns to lower the old Terra markets’ circulating supply.
The collapse of Terra (LUNA) shocked the crypto market. However, the project has no intention of remaining down, as it has received funding from cryptocurrency exchanges to assist it in rebuilding.
Plans to revive Terra as Terra 2.0
Terra announced the airdrop of a new native coin within its new network, Terra 2.0, in a press release on Thursday. The resolution was passed as described in proposal 1623. The token distribution will take place on May 27, 2022, and qualifying holders of Terra Luna Classic (LUNC), TerraUSD Classic (USTC), and Anchor Protocol UST (aUST) will receive new tokens.
The amount of LUNA you are qualified to get is decided by the “types of tokens you held on the Terra Classic chain, the time-period that you held these tokens (based on Pre-Attack and Post-Attack snapshots), and the quantity of tokens held.”
Binance and FTX, two cryptocurrency exchanges, have stated that they are working closely with the Terra team on the next airdrop. Binance’s goal, according to them, is to assist affected individuals on their platform by assisting Terra with the recovery process.
The Terra community just passed a vote to ‘Rebirth Terra Network’.
We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment. Stay tuned for further updates.
— Binance (@binance) May 25, 2022
FTX, on the other hand, has stated that it will assist with the airdrop and that the LUNA and UST markets will be temporarily halted during the move. Aside from Binance and FTX, the Terra team says they are collaborating with several other exchanges to assist the airdrop.
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 25, 2022
Apart from the airdrop, various exchanges, including KuCoin, have indicated support for Terra 2.0 by allowing the new Terra tokens to be migrated, listed, and traded on their platforms.
— KUCOIN (@kucoincom) May 26, 2022
While some exchanges have shown interest in listing the new tokens, not everyone is as supportive. A spokeswoman for crypto exchange BitMEX said that there are no plans to launch the new Terra tokens.
They went on to say:
“We offer tokens for spot trading depending on various parameters, including whether or not we have a custodial solution for that token.” As a result, we have no intentions to list LUNA for Spot at this time.” According to the spokeswoman, when it comes to derivatives contracts, the exchange needs to make sure it has a “stable reference index” before considering contracts on the new LUNA coin.
Not everyone is as enthusiastic about the support
Meanwhile, not everyone is prepared to make the whole switch to the new chain. Despite Terra founder Do Kwon’s opposition to burning LUNA’s circulating supply, MEXC Global users voted to start buybacks and burns on Terra’s secondary market. MEXC committed to a month-long buyback and burning procedure using trading fees generated from its platform’s new LUNA/USDT spot trading pair.
They went on to say that:
“Following an outpouring of favorable feedback from the public, MEXC is pleased to announce that we are the first centralized exchange that goes above and beyond to initiate the LUNA recovery plan.
Over the past 2 days, we have gathered 12,948 valid votes and gained a 98.49% support rate to burn LUNA to decrease LUNA circulation on the secondary market. “
The crypto community has banded together well at its worst time. These efforts will go a long way in setting the perception of the crypto community in the user’s mind.