Binance, the world’s largest cryptocurrency exchange, said it will list the recently launched new token LUNA following a successful airdrop last week.
But the token will be listed in the “zone d’innovation” from Binance, an exchange platform for the new high-risk tokens.
Trading in these tokens will open on May 31.
The launch of LUNA 2.0 was quite volatile, with an 80% drop in the first hours of trading on Saturday. The token seems to have stabilized for now and trades at around $5.
Approximately 1 billion new LUNA tokens have been issued to holders of the old blockchain Terrawhich is now called Terra Classic. Binance and most other exchanges supported this airdrop.
Binance lists LUNA 2.0 as a high-risk asset
In its listing announcement, Binance reaffirmed that the Innovation Zone consists of tokens that feature a much higher risk than others cryptos. Other tokens listed on the platform include Elron Network (ERD), KAVA, and Sandbox (SAND).
Terra 2.0 (LUNA) is a new token which may present higher than normal risk and as such may be subject to much greater price volatility.
Binance requires traders to complete a questionnaire as part of the initial disclaimer for trading in the Innovation Zone.
Other exchanges did not seem to be as cautious as Binance. Communications from major exchanges such as OKX, Huobi, Kucoin, and Bybit suggest that they have allowed regular spot trading for the token following gathering sufficient liquidity.
The position of Binance may also come from CEO Changpeng Zhaowho had harshly criticized Terra’s crash, as well as founder Do Kwon.
Launch comes less than a month following Terra crashed
New LUNA launches less than a month following Terra Classic lost almost all of its value in a historic crash in May. This crash was largely triggered by the depreciation of its stablecoin, the UST.
Terra 2.0 does not include the stablecoin, and also excluded the private wallets of Do Kwon, Terraform Labs and the Luna Foundation Guard – the three entities widely held responsible for the crash.
Nevertheless, the prices of LUNA Classic (LUNC) and UST increased following the airdrop.
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