Exchanges back 'Terra 2.0 revival plan' via airdrops, listing, buyback and burning

MEXC Global has pledged to do a month-long buyback and burning to reduce the circulating supply of the old Terra markets.

The fall of Terra (LUNA) shook the entire crypto market. However, the project has no plans to stay down as the project secured backing from crypto exchanges to help it rebuild.

In an announcement Thursday, Terra provided details about the airdrop of the new native token within its new blockchain dubbed Terra 2.0. The distribution of tokens will proceed on May 27, 2022 and holders of Terra Luna Classic (LUNC), TerraUSD Classic (USTC) and Anchor Protocol UST (aUST) who are eligible will receive new tokens.

Crypto exchanges Binance and FTX noted that they are working closely with the Terra team regarding the upcoming airdrop. According to Binance, their aim is to help affected users within their platform by helping Terra with the recovery plan.

On the other hand, FTX announced that it will support the airdrop and temporarily halt LUNA and UST markets during the migration. Apart from Binance and FTX, the Terra team said that they are also working closely with more partner exchanges that will support the airdrop.

Apart from the airdrop, many exchanges like KuCoin also expressed support for Terra 2.0 by supporting the migration, listing and trading of the new Terra tokens within their crypto exchange platforms.

While some expressed their support, not all exchanges are eager to list the new tokens. In a statement, a spokesperson from crypto exchange BitMEX told Cointelegraph that at the moment, there are no plans to list the new Terra tokens. They explained that:

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

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

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