With wild price swings, the new LUNA cryptocurrency has become a gamer’s paradise

Three days since its launch, the new LUNA cryptocurrency is exhibiting massive price swings and becoming a player’s paradise. After last Saturday’s airdrop, different cryptocurrency exchanges have been showing different prices.

According to data from Kraken, the new LUNA token opened at $17 and then ranged between $30 and $4.80. On the other hand, OKX listed LUNA with an opening price of $1, which later ranged from $5 to $20. On Tuesday, May 31, cryptocurrency exchange Binance also listed the new LUNA token. Although crypto is subject to high volatility, such wild swings in both directions are rare.

Speculators have been posting profits as LUNA rises, while LUNA’s previous version holder and UST stablecoin are recouping losses from the Terra crash. Fadi Aboualfa, head of research at Prime crypto brokerage Copper, said:

“This is pure gaming like never seen in crypto. One of the most important things about cryptocurrencies is branding or marketing and community. Terra has burned down her community and the brand is tarnished. Whatever they do here will be useless.

Will Terra 2.0 succeed?

Of course, it is too early to say anything about the new Terra blockchain. However, looking at the massive crash earlier this month, analysts are largely bearish on Terra 2.0. Speaking to Bloomberg, Thomas Dunleavy, a senior crypto research analyst at digital asset data firm Messari, said:

“This initial volatility just shows me that Luna 2.0 is now a speculative asset and will likely trade in the narrative until they can regain the confidence of builders to bring fundamental value to the new ecosystem. I really, really doubt they can do that with so many other great, well-funded alternatives.”

Amid the massive price swing on LUNA, the cryptocurrency has become largely “illiquid.” As a result, several former UST and LUNA holders also continue to hold the new crypto.

Bhushan is a FinTech enthusiast and has a good gift for understanding the financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain Technology and Cryptocurrencies. He is continuously in a learning process and keeps himself motivated by sharing the knowledge he has acquired. In his spare time he reads thrillers and sometimes explores his cooking skills.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.

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