S.Korea’s Largest Exchange To Support Terra Airdrop, But There’s A Catch

Upbit, South Korea’s largest crypto exchange, said on Thursday it will support the upcoming Terra 2.0 airdrop.

The airdrop will consist of new LUNA tokens, and is part of the blockchain’s recently-approved revival plan to create a new chain. Token holders and developers on the old LUNA chain will be the primary recipients of the the airdrop.

In an announcement on its website, Upbit said the snapshot of LUNA holders from prior to the crash had now completed, and that it will support the airdrop. A second snapshot and airdrop, for holders who bought after the crash, is expected to be completed by May 27.

Upbit is the largest crypto exchange in South Korea, commanding an over 70% market share.

Airdrop support does not guarantee Terra 2.0 trading

Upbit said that while it will support the airdrop, there is no guarantee that the exchange will facilitate trading of the new LUNA token.

This mirrors a stance adopted by other South Korean exchanges, who have reportedly distanced themselves from Terra over fears of a government investigation. Local media reports said South Korea’s other major exchanges had rejected a request from Terra to list the new token.

Founder Do Kwon has denied making such a request.

But several other major exchanges have said they will support the airdrop. Majors such as FTX, Bitfinex, and Huobi all said they will support the airdrop. But there is little word so far on whether they will list LUNA.

Binance said on Wednesday it is “working closely” with Terra over the airdrop.

Exchanges may face U.S. lawsuit over crash

Insider information suggests that Terra holders in the United States are gearing up to sue major exchanges for allowing the trade of UST and LUNA.

Exchanges operating in the U.S., such as Binance, Gemini, Kraken, and Coinbase could be charged under a securities act for misleading people over a potential scam.

Terra founder Do Kwon is already facing a lawsuit in South Korea over the crash.

With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn’t trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns.
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