Crypto Investment Update – LUNA 2.0 Airdrop

This Opinion post first appeared in my blog here: https://pwlcm.wordpress.com/2022/05/27/crypto-investment-update-luna-2-0-airdrop/

LUNA founder and CEO Do Kwon came up with a revival plan, called Terra Ecosystem Revival Plan 2, which was approved on 25 May 2022.

The plan essentially creates a new Terra blockchain that doesn’t have an algorithmic stablecoin, basically distancing itself from the death spiral effect seen in the UST Depeg Saga (refer to my blog post “Crypto Investment Update – UST Depeg Saga” on its impact to my crypto portfolio).

The old chain would be called Terra Classic (LUNC) and the new chain will retain the LUNA ticker. There will be an airdrop of LUNA tokens to LUNC holders and stakers, as well as residual UST holders and essential app developers of LUNC. Below is a summary of this revival plan:

The distribution of the new LUNA tokens would be based on 2 snapshots, “Pre-attack” and “Post-attack”, which are recordings of the state of the LUNC block 7544910 and 7790000 on 7 May 2022 and 27 May 2022 respectively. The details of the token distribution and snapshot timings are shown below:

Following the approval of this LUNA 2.0 airdrop, a few centralized exchanges (CEX), including Binance, Huobi, Bitfinex, FTX, Kraken, etc., had announced supports of the airdrop. Surprisingly, some popular CEX like Coinbase had decided to wind down support for the new LUNA chain (see Coinbase tweet here).

As for my LUNA holdings in Tokenize Exchange, they have sent a LUNA Airdrop Updates at 8pm on 26 May 2022 announcing they will not be supporting the upcoming LUNA 2.0 airdrop (see image below).

It goes without saying that I’m disappointed with Tokenize Exchange not supporting the airdrop. Without their support, I had missed the LUNA airdrop for both the “Pre-attack” and “Post-attack” snapshots. Unless Terra ecosystem opens up token distribution to those caught off-guard in similar situation, I would have to write off my LUNA holdings.

The only consolation I have with my “misadventure” in LUNA, is that I recovered my capital in LUNA when I took partial profit in December 2021. My current LUNA holdings is on the house money.

As for my overall crypto portfolio, the UST Depeg Saga dragged it to negative territory. I can only pin my hope on the recovery of my other coins holdings for the portfolio to turn profitable.