Terra Investors In India Reap No Benefits From Luna 2.0 Airdrops Due to Crypto Tax

  • Terra investors around the world lost billions of dollars when the algorithmic-stablecoin project crashed but they recovered a small part of their bets when a new token was distributed as compensation. Investors in India arent as fortunate.

  • TerraUSD and Luna token holders who got the new coin — known as Luna 2.0 — in a so-called airdrop could be taxed as much as 30% of the value of tokens received and they won’t be able to offset any gains in the new token against losses from the previous one, tax experts said.
  • Anoush Bhasin, founder of crypto asset tax advisory firm Quagmire Consulting, said that the Luna 2.0 airdrops may fit into the existing definition of gifts so a flat 30% tax may not apply but gifts are taxed based on a taxpayer’s income range, or slab rate.