What is LUNA 2.0?

On Thurs. May 25, Terraform Labs, the crypto project behind TerraUSD (UST) and LUNA, announced that the Terra community had approved the creation of a new blockchain, Luna 2.0. The creation of this new chain is a response to unprecedented volatility on the Luna 1.0 chain, which caused the price of the original LUNA and UST to collapse almost to zero. You can read more about those events here.

Through the creation of this new blockchain:

  • The previous chain (LUNA) will become Terra Luna Classic (LUNC).

    • Previous LUNA → LUNC

  • The newly-created chain has assumed the former name Terra (LUNA).

    • New chain → LUNA

Migration to LUNC and trading impact

As part of the migration, the former asset LUNA is now rebranded as Luna Classic, or LUNC. As of June 1, 2022, Apex Crypto has opened up sell-only trading of LUNC on Public.

Airdrop eligibility

Beginning on May 27, a portion of LUNC holders will be eligible to receive an airdrop of the new LUNA token (Luna 2.0), per the terms outlined by Terraform Labs. Airdrops are a broad distribution of free tokens to investors, typically used by crypto projects to increase an asset’s adoption.

In this airdrop, new LUNA tokens will be deposited into certain wallets that hold Luna 1.0 assets (now LUNC). The amount of new LUNA tokens deposited will depend on how much LUNC a wallet holder owns and the time period that LUNC was held, per the Terraform Labs announcement.

If you have a crypto account at Public, your crypto assets are not held in your own, individual wallet. Apex Crypto partners with some of the biggest, most trusted wallet providers in the United States to ensure the safety and security of the crypto assets you invest in. When you purchase crypto through Public, Apex Crypto custodies your assets in one or more omnibus-hosted wallets, which hold your tokens alongside the tokens of other Public investors. As a result, a Public user who holds LUNC will not directly receive LUNA tokens in the airdrop. Rather, Apex Crypto, as the owner of the omnibus LUNC wallet, will receive LUNA tokens in the airdrop on behalf of that user, based on what we know from Terraform Labs.

We are in contact with Apex Crypto to understand what, if any, LUNA tokens it will receive in the airdrop and whether Apex Crypto will be able to distribute those LUNA tokens to Public users who hold LUNC. We will update relevant investors as soon as more information becomes available.

Additional FAQs

Why is Terraform Labs creating a new blockchain?

Extreme volatility in the crypto markets in early May 2022 caused the stablecoin Terra USD (UST) to rapidly “de-peg” from $1. The declining value of UST impacted its sister asset LUNA. The new blockchain is part of an intended revival plan put forth by Terraform Labs. Learn more here.

What are crypto airdrops?

Sometimes crypto projects will send free tokens to investors through what’s known as an airdrop. The goals of airdrops can vary; however, they are often used as a tool to encourage broader adoption of the asset to a large community.

Since airdrops are generally distributed directly to crypto wallets, investors must have a crypto wallet to receive them. Crypto wallets are digital platforms or hardware devices that store unique keys and enable investors to send or receive crypto tokens directly without an intermediary platform.

What does this mean for LUNA holders on Public?

Crypto on Public is powered by Apex Crypto, which is a centralized cryptocurrency platform that facilitates crypto trading for many major investing platforms.

Apex Crypto partners with some of the biggest, most trusted wallet providers in the United States to ensure the safety and security of the crypto assets you invest in. When you purchase crypto through Public, Apex Crypto custodies your assets in one or more omnibus-hosted wallets, which hold your tokens alongside the tokens of other Public investors. As a result, a Public user who holds LUNC will not directly receive LUNA tokens in the airdrop. Rather, Apex Crypto, as the owner of the omnibus LUNC wallet, will receive LUNA tokens in the airdrop, based on what we know from Terraform Labs.

We are in contact with Apex Crypto to understand what, if any, LUNA tokens it will receive in the airdrop and whether Apex Crypto will be able to distribute those LUNA tokens to Public users who hold LUNC. We will update relevant investors as soon as more information becomes available.

Disclosure

Crypto trading and custodying services are provided by Apex Crypto LLC via the Public platform. Apex Crypto is not a member of FINRA or SIPC. Cryptocurrencies are not stocks and your cryptocurrency investments are not FDIC insured or SIPC protected. Please ensure that you fully understand the risks involved before trading.

This FAQ is for educational purposes and is not investment advice.

If you ever have questions, the team is always here for you, so feel free to give us a shout on the app’s Chat Support or via email at support@public.com

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