Crypto Exchanges Including Binance, FTX To Support 'Terra 2.0' Relaunch

Major global cryptocurrency exchanges have announced that they will support the upcoming relaunch of Terra, following the passing of a proposal to launch “Terra 2.0”.

Exchanges including Binance, FTX, Crypto.com, Huobi, Bitfinex, Bybit, Gate io, Bitrue and Kucoin pledged their support for the modified version of the recently collapsed Terra blockchain. Binance stated that it was “working closely with the Terra team on the recovery plan,” while FTX announced that it would support the “new LUNA airdrop and suspend LUNA and UST markets.”

The announcements follow the passing of “proposal 1623,” put forward by Terraform Labs CEO Do Kwon, by the Terra community. The proposal is an attempt by Kwon to revive the crashed Luna ecosystem, which collapsed earlier this month after its algorithmic stablecoin UST depegged from the U.S. dollar.

Terra Community Approves Do Kwon’s Plans to Revive Project

Terra’s “proposal 1623,” outlining plans to revive the collapsed Terra ecosystem, has been approved by the community.  On May 16, Do Kwon, the creator of the Terra ecosystem, proposed revival plans which included the creation of a new blockchain and issuing new LUNA tokens. According to data from Terra Station, 65.50% of all voters support the proposal. More than 20% of voters abstained and 13.20% of the votes strongly opposed the proposal with a “veto.” Vote results for Terra’s revival plan. So...

According to the proposal, Terraform Labs would deploy a new blockchain called Terra 2.0, with the older collapsed blockchain continuing to exist as “Terra Classic”. The relaunched Terra ecosystem will not include the UST stablecoin.

Under the proposal, existing token holders of Terra Classic will be airdropped with newly minted LUNA tokens. 

Exchanges including Bybit, Kucoin, Binance and Crypto.com began voicing their support for Terra 2.0 within minutes of the proposal passing, confirming that users holding LUNA on exchange wallets would be included in the airdrop. Do Kwon stated on Twitter that he had not contacted exchanges to list the new LUNA tokens.

Terra 2.0 is expected to go live on 27th May 2022, following which the airdrop of new LUNA tokens will be processed, according to an announcement from TFL earlier today.

The collapsed LUNA token, which will be renamed Luna Classic (LUNC) following the Terra relaunch, is down over 9% over the past 24 hours and currently trades at $0.0001549, according to data from CoinMarketCap.