LUNA Rallies as Binance Airdrops Token to Users

cryptonews.com:

The price of the new Terra chain’s native token LUNA rose in the market on Tuesday, as the major exchange Binance airdropped it to users and listed it for trading earlier in the morning.

At the time of writing (09:37 UTC), LUNA traded at USD 8.54, up a massive 43.1% in the past 24 hours.

The gains came as, on Monday morning in Europe, Binance announced that it had airdropped the new LUNA token to holders of Terra Classic (LUNC) and TerraClassicUSD (USTC) – the new names for the tokens on the original Terra chain.

The airdrop followed an announcement from Binance published last Saturday, which said that the exchange will list the new LUNA token in its so-called Innovation Zone for trading against the stablecoins tether (USDT) and binance USD (BUSD).

The Innovation Zone is a dedicated area on Binance for trading in tokens that may have more volatility and higher risk than other tokens.

The gains on Tuesday came despite comments from several popular members of the crypto community who claimed that they would “dump” the new token as soon as they received it.

“Zero plans to buy LUNA 2.0, but I will dump any airdrop if I get something on Binance,” Lark Davis, a popular crypto investor and educator, wrote on Twitter on Sunday.

Similarly, another Twitter user argued that Binance’s airdrop is the biggest release of LUNA tokens on any exchange so far, and that it “will move the market.”

The user further argued that many Binance traders will “dump” their LUNA tokens when they receive them. In particular, this is true for users who had UST staked on Anchor Protocol (ANC) because these users “never owned old LUNA and don't care about new LUNA,” he wrote.

The new LUNA token, which was airdropped to the users affected by the collapse of the old