May 2022 will forever remain in the hearts of the crypto community as the single worst period in the cryptocurrency market ever. With the downfall of Terra Luna coming from $100 down to a rock bottom of $0, many people began having second thoughts about the crypto niche. Was day trading with LUNA the better option than holding it for the long term all this time? Did Terra Labs CEO Do Kwon truly fool his own investors or was it because of breaking some rules on coin stabilization?
This short article will provide a short analysis of whether or not putting your money in LUNA is safe again.
Disclaimer: this is not financial advice.
The restoration of LUNA and UST in crypto platforms
When LUNA and UST both dropped dead to $0, platforms including Binance, Bybit and eToro officially delisted them. However, on May 13, LUNA and UST were re-listed again for Binance but only for the /BUSD exchange. The crypto exchange may be playing it safer since the LUNA/UST margin is still too dangerous for traders and investors to walk into.
After the relisting of Terra and Do Kwon’s tweets regarding solutions, LUNA rolled in to skyrocket to more than 20,000%. Early buyers caught the fresh fish, netting in massive profits in a short time.
Does this mean Terra is back?
Sure, the LUNA token and UST stablecoin (ironically unstable this time) may be back but that does not mean they are safe from volatility. After all, both coins returned from a -100% loss, tanking every investor’s portfolio. Yet, with the new rise and relisting, there may shine a beacon of hope for the old investors and the day traders looking to cash in on a massive gain.
However, the depegging of the UST also means extreme volatility within the LUNA/BUSD and UST/BUSD markets. If you still believe in the project and would like to begin day trading or investing in LUNA, you may want to only put in a small amount of money that you are willing to lose.