Terra’s new revival plan and LUNA – All going as expected?
Since the re-launch of the Terra ecosystem via Terra 2.0 on 28 May, the price of Terra (LUNA) has dropped by almost 70%. In the first 30 minutes of trade, the price skyrocketed from $0.30 to $20. The high, however, was short-lived, as the price dropped to barely $5.30 in the next three hours.
Source: Coinstats
On CoinMarketCap, the old LUNA has been renamed Terra Classic (LUNC), and a second listing for the new Terra (LUNA) has been added. New LUNA tokens, also known as LUNA 2, are being airdropped to investors who previously held Luna Classic (LUNC), TerraUSD Classic (USTC), and Anchor Protocol UST as part of Terraform Labs creator Do Kwon’s resurrection plan.
Do Kwon confirmed the relaunch of Terra 2.0, the company’s new chain that intends to resuscitate LUNA and TerraUSD ecosystems. Hard forking the existing blockchain and reissuing LUNA tokens to existing investors based on a snapshot taken before the death spiral bled the LUNA and UST markets – Effectively resulting in unrecoverable losses for investors part of Kwon’s Terra resurrection plan. Unfortunately for Terra and Luna advocates, the ship is already sinking.
At this point, the rapid drop appears to indicate a lack of confidence in Do Kwon’s rebranding going forward. Many investors are suggesting on Twitter that they are instead attempting to recoup a tiny percentage of their previously lost funds and walk away from the project.
Lark Davis, for instance, recently told his 988,000 Twitter followers,
“Zero plans to buy $luna 2.0, but I will dump any airdrop if I receive something on Binance.”
The price was consistent for several hours at $6-$7, but it is still declining. Many investors have lost faith in the Terra ecosystem following the tragic events of the last few
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