LUNA 2.0 hits $30 then drops 80% in first day of trading
The new LUNA 2.0 chain went live today, May 28, at 6 am UTC, as millions of wallets received an airdrop of the new token. The genesis chain also began trading on ByBit at 8 am UTC. The price started at $0.30 before skyrocketing to $30 in the first 30 minutes of trading. However, the high was short-lived as the price tumbled to just $5.30 in the following 3 hours.
At the time of writing, LUNA 2.0 is not available on other major exchanges such as Binance, with the exchanges still working through processing the airdrop of tokens to their users. On Gate.io, it reached a high of $18, while on KuCoin, the volatility was considerably lower, with a high of just $7.4. ByBit appears to have seen the highest volatility due to the fact that it listed the token ahead of many of its competitors.
The price stabilized around the $6-$7 price mark for several hours but is currently trending down, with the price at the time of press just $5.70. The selling pressure for the new chain is unsurprisingly high as many investors are cashing out after losing all confidence in the Terra ecosystem after the catastrophic events of the past few weeks. Further, without the UST stablecoin on the new chain, the only use for the LUNA token is in the governance of the ecosystem.
This is a developing story as the new LUNA blockchain has only been running for six hours. Many investors have not yet rexeived their airdrop, so that selling pressure could continue as the rest of the tokens are distributed.