Saturday, July 2, 2022

Exchanges come out to support users devastated by the LUNA fiasco

The Takeaway:

MEXC, Binance, FTX, and others have outlined their plans to compensate those lost in the LUNA/UST meltdown.

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.

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.

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.

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. 

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jesse Kirby
Jesse Kirby
Since his childhood days, Jesse was fond of writing and learning new things. He developed a special interest in bitcoin back in 2011 and started to get deep into the crypto space. After completing his masters degree from Bnos Menachem School, New York, Jesse became a full time writer and crypto analyst.

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