Rebirth of Terra: What Do We Know About Luna 2.0 So Far?
On May 8th, 2022, two of the largest Blockchain-based assets, UST and LUNA, began to fall. UST, a stablecoin based on Terra, lost its peg to barely 30 cents in a few hours. A few weeks later, UST is considered a dead investment option, with the original Terra also losing its impact in the crypto markets. Due to the troubles, Do Kwon, the creator of the UST stablecoin, announced a revamp plan for the entire Terra network, the Luna 2.0 launch.
Here Comes Terra Luna 2.0
The birth of Luna 2.0 is one of the most searched crypto topics in the past few days. Terra 2.0 is a new blockchain created by Terraform Labs, LFG, and Do Kwon. On May 25th, 2022, The Terra community passed a vote for the rebirth of this blockchain network. Over 65% of the Terra community voted to approve Terra rebirth under that Terra 2.0 label. After the many plans of launching the second generation of the Terra network, Terra 2.0, on May 28th, the network began airdropping Luna 2.0. Although many refer to this network as Terra 2.0, the network chose to change the original name. The original version of this chain is called Terra Classic, with tokens using symbols LUNC (former LUNA) and USTC (former UST). This new Blockchain introduces Luna 2.0(LUNA). At the moment, therefore, we know that the new chain will not be introducing the algorithmic stablecoin. So, what do we know about this token and the Terra network?
Airdrop Starting May 28th, 2022
Reports indicate that the network has been issuing some of the 1 billion Luna 2.0 tokens to holders of UST and LUNC. The network will issue around 35% of the new Luna tokens, with 10% going to UST holders before the crash and 25% to existing LUNC and UST holders. The amount of LUNA airdrop tokens you can receive depends on the type of token you held and the time you owned it. Accordingly, investors who had over 10k Luna tokens receive 30% at the start, and 70% is distributed in 2 years. The idea is to prevent a massive selloff that would drive prices down. Further reports indicate that 30% of the 1 billion new tokens will go to a new pool for LUNA investors.
Exchanges and Wallet Involved
Before its sudden death, Luna was one of the giant crypto networks within the blockchain space. It was listed in most crypto exchange networks out there. Due to the problems, many exchanges delisted Luna and UST. After Terra launched Luna 2.0, several exchanges began listing this new token, including Kraken, Kucoin, Huobi global, etc. The Binance exchange had not yet listed the token when writing this report, but they worked very hard with the Terra team. Several South Korean crypto exchange platforms rejected Do Kwon’s calls to list Luna 2.0. Many of such exchanges don’t have confidence in this new project after the events connected to the original project. While other Korean exchanges might list Luna 2.0 in the future, the lack of confidence now could be appalling for the health of this new coin. Aside from exchanges, top crypto wallets are reconsidering whether to start supporting this token. Trust wallet, for instance, held a governance vote to decide if they could support the newly launched token.
LFG Still Under Investigation
While Do Kwon and LFG are behind this new project, regulatory authorities are still investigating the network. Reports indicate that the Seoul Metropolitan Police is already looking into the Terra network and is likely to freeze the LFG funds. The idea is to prevent them from withdrawing any monies from the project. Do Kwon is still criticized for the fall of UST, with many investors noting that he might have acted fraudulently. However, many others claim that even in the wake of the Luna 2.0 launch, Do Kwon remains cocky, claiming that the rebirth will be bigger than the original project.
LUNA Price Actions: Is It a Worthy Investment Choice?
After understanding what Terra and Luna 2.0 are all about, it’s nice to know if these assets are a worthy investment option. Mark Cuban, one of the billionaires who has been a vocal supporter of crypto, said he wouldn’t be investing in Luna 2.0. It appears that the billionaire, like many other investors, does not have any confidence in the token. When first released into the markets, the Luna 2.0 token traded at $0.3. It soared 1000x to trade at $30 sometime on May 28th. However, Luna lost three-quarters of its value in just hours and plunged even further to about $3. When writing this report, this new token was trading at $2.05. In fact, in the 24 hours starting on late 19th June, LUNA soared by about 11% in price. There were massive uncertainties around BTC and the crypto market when writing this report. Hence, many experts noted that it might be impossible for the coin to retrace to its ATH. However, the coin will recover and gain even further in the long term. Some investors predict LUNA will likely be bigger than the original chain. Before the crash, Luna had a market cap of $30 billion. If LUNA manages to keep itself relevant in the markets and the community, it will be a good investment option. The removal of UST algorithmic stablecoin offers security.
