A week after delisting Terra (LUNA), crypto platform eToro has relisted it to buy and trade as of May 19th. Is LUNA a good buy though?
eToro first decided to suspend LUNA buying when it hit $0.0099, which happened just before the close of the daily candle on May 12th, before a short-lived 500% bounce to $0.049, which then sold off again to drop far below $0.0099 by the early hours of May 13th.
It even dropped to a low of $0.00000112, so eToro would have saved some LUNA buyers from a further 99% drop followed by a final 90% drop.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Should Exchanges Relist LUNA
Some traders were upset LUNA when was delisted, and some are now that it has been relisted.
Some investors think they would have been able to buy the bottom and catch an over 500x bounce – LUNA traded as high as $0.000595 on Binance while it was suspended on eToro, a 53,125% bounce.
The low was hit on the morning of May 13th, not long after eToro closed the markets. The LUNA price even wicked to $0.002 on Binance at one point on the 13th against BUSD.
Some think crypto exchanges shouldn’t make the decision to delist coins, arguing traders should be free to make their own decisions. Decentralized exchanges (DEXes) like PancakeSwap and Uniswap are becoming more popular for that reason, and new ones emerging like DeFi Swap.
eToro does not allow traders to buy LUNA as a CFD position (margin trading on leverage), and has set a maximum spot position size of $2000 – so they can only buy LUNA on eToro up to that amount.
eToro also displays a risk warning – ‘Please bear in mind that liquidity on this asset is unstable and it is possible that this asset may be disabled again in the future.’
Is LUNA a Good Buy
We wrote some LUNA price predictions on our will LUNA recover post. The circulating supply has risen to 6.5 trillion so unless a large part of that is burnt so reduce the LUNA coins in circulation back to around 350 million, it will be difficult for it to recover even to one cent.
However if you’re looking to buy LUNA for the first time or dollar cost average into it to lower your average entry price, it could move up in price.
The LUNA marketcap at the time of writing is around $950 million, dropping just under $1 billion when Bitcoin dropped under $29,000 today, and US stocks sold off.
If Terra (LUNA) can recover to the same market cap as, for example, Polkadot (DOT) that would mean a 10x increase in the LUNA price, and it would still be just outside the top 10 crypto assets. Currently LUNA is ranked #213 on Coinmarketcap.
Read about the proposed hard fork of Terra which is set to go ahead as part of the TerraUSD (UST) and LUNA recovery plan. Whether LUNA will go up will depend on how successful those plans are.
There are also now breaking news rumors that Terraform Labs owes $78.5 million in taxes to the South Korea government.
Where to Buy LUNA Now
The crypto exchanges where LUNA can currently be bought now include:
Coinbase will suspend WLUNA crypto trading on May 27th.
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Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
eToro USA LLC does not offer CFDs and neither does it represent or assume any responsibility for the accuracy or completeness of the content of this publication, prepared by our Partner, using information available and public and not specific to the eToro entity.
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