Terra Investors in India Unlucky With New LUNA

Upbit Announces Committee Setup to Refund Terra Investors
  • New LUNA is trading at $5.31 and lost 73% from its all-time high of 19.54.
  • India is the largest crypto investor country.

When the algorithmic-stablecoin Terra collapsed, investors around the world lost billions of dollars. For an alternative, the founder of terra Do Kwon launched a new blockchain without the algo-stablecoin on May 28. With the new token, investors were able to recover a tiny amount of their losses but India’s investors aren’t as lucky with this.

New LUNA opened trading at $18.98 and had a trading volume of $281,599,801. Since the relaunch of the new Terra network coin, LUNA has fallen by nearly 73% from its all-time of $19.54 and traded at $5.31USD, at the time of writing.

Source CoinMarketCap

Indian Investors Lost More 

TerraUSD and LUNA token holders who received the new coin in an airdrop suffer a double blow because the country’s tax regime charges on crypto investments. Investors could be taxed up to 30% of the value of tokens that they obtained, and they won’t be able to offset any profits in the new token against losses.

India is the first country that adopted most cryptocurrencies, over 100 million, or 7.30% of the population own digital assets. Under the Finance Act of 2022, cryptocurrency transactions are taxed at 30%, with a 1% TDS applied to crypto asset transfers. 

According to Rajagopal Menon, vice president at Binance-owned WazirX, there were over 160,000 investors holding LUNA on the exchange on May 9th, and by May 15th, the number had grown by 77% in India. It’s unsure how many more investors had TerraUSD in their investments.

The increase is due to an increase of purchasers just after the 9th of May when the buyer-to-seller ratio was 5:1, and the 11th and 12th of May are the last and biggest day in LUNA. On May 12th it was traded at $1.07, after that, it had lost 99% of its value.  

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A journalism graduate who is passionate about writing loves to dance and travel currently starts exploring blockchain technology.