Upbit, one of the biggest exchanges in South Korea, has announced that it will lend a helping hand to the airdrop that Terra has lined up. Terraform Labs recently announced that it would be giving away new LUNA tokens as part of efforts to kick its new chain into gear. Notably, the plan to actualize this latest update was given recently after the proposal was submitted by the company led by its CEO, Do Kwon.
Terraform Labs lines up new LUNA airdrop
According to the new update, most new coins will be shared among validators and holders of the old LUNA tokens. In the announcement that Upbit made earlier, the exchange confirmed that it had completed a snapshot of all the wallet addresses holding LUNA before the crash occurred. Another snapshot is expected to be completed in the coming days with the recipient holders of the token bought after the unfortunate crash. Upbit has cemented its spot as one of the biggest crypto exchanges coming out of South Korea with the massive successes it has recorded in the last few years. Asides from that, the exchange commands more than 70% of the trading volume coming out of South Korea.
Upbit will not allow trading the new LUNA tokens
Although Upbit has signaled its intention to support the airdrop, the exchange has warned users that they might not be able to trade the new tokens on the exchange. Since the crash happened, Terra has generated buzz home and abroad, with most regulators looking into their activities. There were reports that regulators would start looking into exchanges because they helped facilitate the trades without warning users of their volatility.
Most countries have an enshrined rule that must-see crypto exchanges caution investors before buying or trading tokens. Failure to comply will see them charged with aiding a project suspected of being dug pulled. There are also reports that Upbit is trying to evade a government inquiry into its activities before when the crash first happened. Local news media had also mentioned that a few exchanges had also declined when they were contacted to help facilitate the airdrop.
However, Do Kwon has allayed the reports stating that he has not made requests to exchanges to help them carry out the airdrop. Binance has also released a statement saying that it is in close contact with Terra over the airdrop, which is scheduled to begin at any moment from now. Aside from South Korean exchanges, U.S exchanges will also be trying to stay calm so as not to trigger calls for an inquiry.