LUNA 2.0 Doesn’t Seem Promising

The recovery plan for LUNA, which is tagged LUNA 2.0, doesn’t seem to be very promising on its first day of launch. When Do Kwon announced the recovery plan for LUNA,  which kickstarted on May 27, 2022, it was met with mixed reactions from various sectors of the cryptocurrency industry.

The recovery plan started with an airdrop for users of the LUNA ecosystem and was supported by various exchanges. These exchanges included Binance, which is currently the cryptocurrency exchange with the largest trading volume in the world.

LUNA has attempted to stage a comeback from the awful events that happened early this month, that saw its prices drop by astronomical amounts and which left a poor taste in the mouth of investors. Its comeback has so far failed to re-inspire confidence in the stablecoin. After the launch of LUNA 2.0 on the Terra 2.0 protocol, the price has been fluctuating rapidly and is not off to an inspiring start, with unstable prices which have been underwhelming to investors.

The instability of the coin’s price is currently one of the biggest concerns; the price increased on release from $0.5 to $30. However, within the blink of an eye, the price dropped to $4 before regaining its stability at $6, where it’s currently trading.

However, the price of LUNA is not the same on every exchange. For example, the price analysis described in the previous paragraph comes from an exchange known as Bybit. It is important to note that the price of the coin is dependent on the trading volume of a particular exchange. 

The data from Coinmarketcap shows that over $230 million has been done in trading volume in the past 24 hours at the time of writing of this article. The larger percent of these volumes was done on Kucoin. However, Binance is yet to launch LUNA trading, as it is expected to kickstart on May 31st.

Whilst analysts and crypto enthusiasts are skeptical about LUNA 2.0’s launch, only time will tell what will happen with the stablecoin, but many continue to eagerly watch to see if Do Kwon’s recovery plan will pay off. 

Featured Image: Megapixl @Vladsseven

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