Wrapped Luna Investor
How to Buy Wrapped Luna (wLUNA)
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May 12, 2022 Update: Due to the high potential for a collapse of the entire Terra (LUNA) ecosystem we recommend that investors undertake serious due diligence before purchasing this digital asset. There is a high probability that this token will eventually be delisted from major exchanges and that the price will drop to $0.00. Below is our original “How to Buy” article for informational purposes.
Wrapped tokens are pegged assets which allow for exposure to an underlying asset on a non-native blockchain. For instance, Wrapped Luna (wLUNA) is an asset built atop the Ethereum network as an ERC-20 token. Each of these wLUNA represent actual LUNA tokens built atop their native Terra network on a 1:1 basis. The purpose of which is to allow for holders of wrapped tokens to reap the benefits of different networks, while ensuring they retain exposure to the asset of their liking.
As mentioned, wLUNA are representative of LUNA – a native token of the Terra Network. Terra describes itself as a ‘public blockchain protocol deploying a suite of algorithmic decentralized stablecoins which underpin a thriving ecosystem that brings DeFi to the masses'.
LUNA tokens, which can be exchanged 1:1 for wLUNA at any time, provide holders with various benefits. These range from governance (voting rights), staking, and primarily as a means of stabilizing prices of stablecoins built atop the network by incentivizing either the minting or burning of said stablecoins. LUNA do not have a fixed supply, and are created and destroyed on an as-needed basis.
While wLUNA may offer holders the ability to take part in certain Ethereum based dApps, it is important to note that these tokens lose their functionality on the Terra Network in this form. To regain voting rights, staking capabilities, etc., wLUNA must be converted back to LUNA.
To learn more visit our Investing in Wrapped Luna guide.
We list the top 3 exchanges that offer the ability to buy Wrapped Luna (wLUNA) cryptocurrency with a credit card, debit card, or Bitcoin (BTC).
Poloniex
Poloniex was founded in the United States in 2014. It has quickly risen to become a very popular exchange of choice for crypto traders looking to combine a wide range of assets. Poloniex continues to expand its supported assets, with more than 100 unique pairings – including Wrapped Luna (wLUNA). With a recently revamped look the exchange also looks more professional than ever, while boasting trading in futures and leveraging of up to 100:1.
Read our Poloniex Review or visit Poloniex.
Uniswap
Uniswap is a decentralized exchange (DEX) for swapping tokens, which uses an automated market maker (AMM) model that allows users to trade against a liquidity pool. While this is obviously a good option to purchase Wrapped Luna (wLUNA), we only recommend this platform for advanced users. Due to the fact that this is exchange is decentralized, you are liable for any losses due to errors made.
Learning to use decentralized exchanges is not for the faint of heart. We recommend coinbase.com instead.
SushiSwap
SushiSwap is an AMM (automated market maker) and DeFi (Decentralized Finance) platform that enables users to swap tokens in a decentralized manner. The platform currently supports over 20 wallets, and is one of the more popular DEX (Decentralized Exchanges) to offer Wrapped Luna (wLUNA) buying opportunities.
It should be noted that with SushiSwap being a decentralized exchange, there is no recourse should a problem occur. Due to this and the confusing terminology on the website we recommend coinbase.com instead.
