Amid the sudden Luna crypto crash and push for a Luna recovery, another cryptocurrency called Wrapped Luna has been hit just as hard.
Billed as an ERC-20 token built to track the value of Luna, the sudden collapse has affected its value. Both Luna and Wrapped Luna are now trading at below $0.01.
With Luna 2.0 now live following Terra Luna vote for a new chain, let's take a look at the latest on Wrapped Luna.
What is Wrapped Luna?
Wrapped Luna is an Ethereum token made to represent Luna on the Ethereum blockchain. It is a separate ERC-20 token designed to track the value of Terra Luna.
Wrapped Luna was further created to enable Luna holders to trade, hold and participate in decentralised finance dApps on Ethereum. Users can also trade WLUNA to Luna through a WLUNA partner, and vice versa.
The concept of wrapped tokens can be further described as the tokenised form of another coin, usually anchored to the value of the asset that it represents. These tokens can be redeemed or "unwrapped" by users at any time.
Wrapped Luna 2.0?
Wrapped Luna will not follow Luna 2.0, but will instead maintain its tracking to the current version of Luna, soon to be known as Luna Classic.
As such, it will not follow the Luna 2.0 price.
The WLUNA token was also not included in the snapshot for the upcoming airdrop.
A potential new Wrapped Luna token could launch in the future to represent the new coin, but nothing has been confirmed yet.
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Wrapped Luna Price Falls
The recent Luna price collapse has also affected the price of WLUNA, which at press time is sitting at $0.00012. Since Wrapped Luna is pegged to the value of Luna, its immediate price fall has also influenced the price of WLUNA, which is down 99.9%.
Wrapped Luna has an all-time high of $268, which it reached in November 2021 before the Terra ecosystem collapsed.
With Luna delistings on exchanges such as Binance happening following the crash, Wrapped Luna had a similar fate. Coinbase, which does not support Luna, announced on Twitter it would pause Wrapped Luna trading from May 27. Deposits and withdrawals will not be suspended, however.
TerraForm Labs CEO Do Kwon said the team reached out to Coinbase regarding Wrapped Luna, but has not heard back.
Coinbase previously announced it would support Terra Luna, but this Luna Coinbase listing has now been cancelled.