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In November 2022, FTX—the fourth largest cryptocurrency exchange in the world—its sister firm Alameda Research and 130 affiliated companies under the banner of FTX Group filed for bankruptcy.
It was news that shocked the crypto world, with the market dropping across the board. It came after rival cryptocurrency exchange Binance had expressed its intention of an acquisition, before promptly reneging on the deal. Apparently, after doing some due diligence, Binance chief executive Changpeng “CZ” Zhao  announced that he was liquidating all Binance’s holdings of FTX’s cryptocurrency FTT (the amount of  has not been specified).
“Liquidating our FTT is just post-exit risk management, learning from Luna,” CZ posted on Twitter, pointing to “recent revelations that have came to light”.
These ‘Luna lessons’ refer to Terra Luna’s sudden downfall; Terra Luna was once worth around $US116 per coin. Today, the coin (which has been renamed LUNC on exchanges) is worth $0.000164 with the price continuing to decrease. Terra 2.0, the new version, is at $US1.67.
The story of Luna’s downward spiral is much the same for FTX—which was valued at $US32 billion only a few months ago—causing many in the crypto scene to be wary of history repeating itself.
“Much like the Terra/LUNA tokens earlier this year, it is possible for FTT to become valueless in days,” noted Josh Peck, founder of TrueCode Capital.

The Terra Luna 2.0 coin is a reincarnated version of the one involved in the collapse of the original Terra blockchain. Not to be confused with Terra Classic and Luna Classic, the chain from which the new Terra blockchain hard forked and its native currency, the new Luna is no longer associated with the Terra US (UST) stablecoin.
Terra Luna 2.0 launched at around $US6.30 in June before a wide-scale sell off saw the token lose almost 70% of its value.
Prices plateaued until early September when they rallied to a peak of $US7.24 before crashing to $US2.83 on Wednesday 14 September.
The token has a market cap of more than $US360 million.
It’s this kind of volatility in crypto that has led to repeated warnings from the Australia’s financial watchdog, ASIC.
ASIC warns people to be highly cautious when investing in cryptocurrency and be on the look out for scams. What’s more, as the past year of news updates indicate, Luna has been on quite the ride, and investors would be wise to tread very carefully.
If you’re aware of the risks but you’re still interested in buying the new Luna token, here’s how to do it.

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If you are still keen to buy Luna, you’ll need to use a crypto exchange to swap your fiat currency (Australian dollars) for Luna.
Since Luna is relaunching after having been pulled from exchanges following its crash, the token hasn’t yet returned to all exchanges. At the time of writing, Luna was available from Binance, KuCoin, eToro and a handful of other exchanges.
When choosing an exchange, there are a few important things to look out for, such as:
This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency as an investment class. 
Exchanges generally don’t charge fees on direct bank transfers, making them the cheapest and simplest way to pay. Fees for credit and debit card payments are common, plus not all card issuers allow you to pay by credit card.
For example, Commonwealth Bank doesn’t allow for crypto purchases on CommBank credit cards; however, you can use a Commonwealth Bank debit card.
Once you’ve chosen a payment method, navigate to the Luna page in your chosen exchange (be careful not to choose Luna Classic, or LUNC) and tap in the amount you’d like to invest.
Many exchanges offer an integrated wallet to store your Luna in, but you may want to store your crypto in a third party wallet, or offline in a cold wallet.
Online ‘hot’ wallets are a target for hackers. Tokens held in them can and have been stolen, but the upshot is that if you were to lose your wallet credentials and couldn’t access your tokens, the exchange could help you recover them.
Offline, ‘cold’ wallets are harder for hackers to access because of the ‘air gap’ between the hardware and your connection to the internet. However, if you lost your access to your wallet (for example, you lost your credentials), you could be locked out of your own wallet with nobody to help you.

The Luna crypto crash was caused by its connection to TerraUSD (UST), the algorithmic stablecoin of the Terra network. On May 7, 2022, more than $US2 billion worth of UST was un-staked (taken off the Anchor Protocol), and hundreds of millions of it were quickly liquidated.
Terra Luna Classic, traded as LUNC once the new Luna 2.0 was developed (LUNA), is worth $US0.000177 at the time of writing.
Luna 2.0 (the reincarnated version of the Terra Luna Classic that crashed earlier this year) is currently valued at $US1.67. This is down from its high of $US19.54.
While some investors encourage ‘buying the dip‘ (meaning to invest in cryptocurrency while it is low, before it potentially rebounds in value), there is no way to know if Luna will increase substantially or fall even further. Many experts warn against deploying the ‘buy the dip’ strategy, whether it’s for crypto or stocks.
Staff writer Mark Hooson has been a journalist within the personal finance, consumer affairs and fraud sectors for more than 10 years. He is also Forbes Advisor UK’s resident tech expert. Mark says he thrives on making ‘complicated and dry topics easier to digest’.
Sophie Venz is an experienced editor and features reporter, and has previously worked in the small business and start-up reporting space. Previously the Associate Editor of SmartCompany site, Sophie has worked closely with finance experts and columnists around Australia and internationally. Sophie grew up on the Gold Coast and now lives in Melbourne.

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