Exchanges bet on the “Terra 2.0 reactivation plan” through airdrops, listings, buybacks and burns

Exchanges bet on the “Terra 2.0 reactivation plan” through airdrops, listings, buybacks and burns

The fall of Terra shook the entire cryptocurrency market. However, the project has no plans to remain idle as it has secured the backing of crypto exchanges to help it rebuild.

In an announcement Thursday, Terra provided details on the upcoming distribution of the new native token for its new blockchain, called Terra 2.0. Token distribution will take place on Friday, with eligible Terra Luna Classic (LUNC), TerraUSD Classic (USTC), and Anchor Protocol UST (aUST) holders receiving new tokens.

Cryptocurrency exchanges Binance and FTX noted that they are working closely with the Terra team regarding the upcoming airdrop. Binance declared which aims to help affected users on the platform by helping Terra with the recovery plan.

FTX announced that it will support the airdrop and temporarily halt the LUNA and UST markets during the migration. The Terra team said which in addition to Binance and FTX, is also working closely with more partner exchanges that will support the airdrop.

Aside from the airdrop, many cryptocurrency exchanges, such as KuCoinalso expressed their support for Terra 2.0 by supporting the migration, listing and trade of the new Terra tokens on their platforms.

Nevertheless, not all exchanges are willing to list the new tokens. In a statement, a spokesperson for cryptocurrency exchange BitMEX told Cointelegraph that there are currently no plans to list the new Terra tokens.. They explained:

“We list tokens for spot trading based on numerous factors, including the fact that we have a custody solution for that particular token. As such, we have no plans at this stage to list LUNA in cash.”

As for derivatives contracts, the spokesperson said that the exchange needs to ensure there is a “reliable benchmark index” before it can consider contracts in the new LUNA token.

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In the meantime, not everyone is ready to move completely to the new chain. Despite Terra founder Do Kwon’s position against burning the circulating supply of LUNA, users of crypto trading platform MEXC Global voted to initiate buybacks and burning on the Terra secondary market.. Using trading fees collected from the new LUNA/USDT spot trading pair within its platform, MEXC committed to a month-long buy-and-burn process.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

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