The Possible Reasons for Binance Migration Plans for Terra Projects
Binance exchange, the world’s number 1 cryptocurrency exchange, noted that it will support the migration of Terra projects to the Binance blockchain. This announcement came to some in the crypto industry as a surprise since Terra (LUNA) and Terra USD (UST) holders are counting their losses. Terra native token (LUNA) is trading at $0.0001343 while TerraUSD (UST) is trading at $0.03523. However, some of the possible reasons why Binance is driving this migration are:
- Big loss due to the collapse
- To restore investors' confidence
Binance Founders Huge Loss
Binance CEO, Changpeng Zhao was among the early investors and proponents of Terra. During the launch of Terra in 2018, Binance founder, investment $3 million for 15 million LUNA tokens. This investment was worth over $1.787 billion when LUNA attained its present all-time high price of $119.18 on April 5th, 2022. Presently, the 15 million LUNA token is worth $2014.5 since LUNA is trading at $0.0001343 at the time of writing. This is about 0.000112% of its value about 47 days ago. With this migration, some projects on Terra blockchain like Anchor Protocol could be saved from further collapse. Anchor Protocol (ANC) has decreased in price by over 800%. It is presently trading at $0.024 with a 24-hour decrease in the price of 19.95%.
To Restore Investors' Confidence
Most investors on different projects on the Terra blockchain have lost confidence in the Terra team. A migration to Binance Smart Chain will ensure that the confidence is restored due to the rule that the Binance founder, played to ensure that the collapse of the Terra network was prevented. Holders of Terra (LUNA), TerraUSD (UST), and other Terra projects like Anchor Protocol (ANC) and Mirror Protocol (MIR), Binance users, can transfer both LUNA and UST from Terra Station to Binance exchange. The following steps are required in other to transfer LUNA or UST from Terra Station to the Binance exchange:
- On the Binance homepage, click on the wallet.
- Then select fiat and spot.
- Search for LUNA or UST.
- Select Terra as the network, and copy the address and memo.
- Go to Terra station, and select the token you wish to withdraw. Select either LUNA or UST.
- Fill in the amount and also pick either LUNA or UST option for the transaction fee.
- Click on send. The transaction is completed within a few seconds.
Although the Binance exchange suspended withdrawal of LUNA and UST during the Terra implosion on May 13th, this has been lifted. Binance users who wish to withdraw the Terra (LUNA) or UST holdings can take the following steps:
- Go to Terra Station, and click on LUNA or UST.
- Click on receive and copy the deposit address provided. Since this is a private wallet, you do not need a memo number unlike when transferring from an Exchange to Terra Station.
- Go to Binance Exchange and Click on the wallet.
- Click on fiat and spot. Search for LUNA or UST.
- Click on withdraw.
- Select the network which is Terra, and past the address.
- Confirm your transaction and send.
Your LUNA or UST will arrive in the tour Terra Station wallet in a few minutes. With the recent news that Binance will support the airdrop of LUNA 2.0 for Terra and UST holders, we should expect a high demand for LUNA soon.
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