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Wrapped Luna: what it is and why it has decreased

In addition to Luna and TerraUSD, Wrapped Luna was also affected by the collapse of Earth.

Amid Luna’s sudden crypto crash and push for a Luna recovery, another cryptocurrency called Wrapped Luna was hit just as hard.

Billed as an ERC-20 token built to track the value of Luna, the sudden collapse affected its value. Both Luna and Wrapped Luna are now trading at less than $0.01.

With Luna 2.0 now live after Terra Luna’s vote for a new chain, let’s take a look at the latest news on Wrapped Luna.

What Is Wrapped Luna?

Wrapped Luna is an Ethereum token created 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 allow Luna owners to trade, hold and participate in decentralized financial dApps on Ethereum. Users can also exchange WLUNA for Luna through a WLUNA partner and vice versa.

The concept of wrapped tokens can be further described as the tokenized form of another coin, usually pegged to the value of the asset it represents. These tokens can be redeemed or “discarded” by users at any time.

Wrapped Luna 2.0?

Wrapped Luna will not follow Luna 2.0, but will instead keep its tracking until the current version of Luna, soon known as Luna Classic.

As such, it will not follow the moon price 2.0.

The WLUNA token was also not included in the snapshot for the upcoming airdrop.

A potential new Wrapped Luna token could be launched in the future to represent the new coin, but nothing has been confirmed yet.

Wrapped Luna Price Crash

The recent collapse in Luna prices 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 drop in prices also affected 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 Earth’s ecosystem collapsed.

With Luna’s delistings on exchanges like Binance occurring after the accident, Wrapped Luna had a similar fate. Coinbase, which does not support Luna, announced on Twitter that it would pause trading of Wrapped Luna from May 27. Deposits and withdrawals will not be suspended, however.

TerraForm Labs CEO Do Kwon said the team contacted Coinbase regarding Wrapped Luna, but received no response.

Coinbase had previously announced that it would support Terra Luna, but this list of Luna Coinbase has now been deleted.

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