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Terra Hits Rock Bottom as LUNA 2.0 Declines 62% in a Week

It has been two weeks since Terra (LUNA) restarted the blockchain as LUNA 2.0. Despite the community voting strictly against a hard fork on Twitter, the vote on the project’s official site a few days later reflected the complete opposite results, with 65.5% of the voters (out of 200,403,090 total votes) opting in favor of Luna’s rebirth via hard fork.

Self-Proclaimed Terra Insider Exposes Do Kwon’s Lies

The LUNA 2.0 airdrop was carried out in the hopes that the millions of newly distributed tokens would help revive the now worthless signature tokens of Terra (LUNA) and Terra (UST). The main obstacle to this ideal plan was that public trust in the new ecosystem was extremely low. This was especially the case after an anonymous insider going by ‘Fatman’ revealed on Twitter that Do Kwon had stated numerous times that the new ecosystem would be “community-owned”. However, in spite of that, “TFL owns 42M LUNA, worth over $200m”, Fatman claimed.

While the turmoil overtaking the crypto market has been due in no small part to the rapid decline of LUNA 2.0, the controversy and legal troubles surrounding Do Kwon have done extreme damage. South Korean authorities have turned up the heat in their investigation into Terra, with the authorities seemingly set to sue Do Kwon and Terra Labs on $78 million tax evasion charges.

The Yeouido Grim Reaper is After Do Kwon

As if that wasn’t enough, South Korean authorities have revived the famous “Grim Reaper” task force to investigate the Terra ecosystem’s collapse. While the Yeouido Grim Reaper task force hasn’t been active for two years, Terra’s demise seems to be a grave enough event to call the legendary financial crimes unit back into action.

Massive Sell-off Results in Another Fiasco

Rumors have been making the rounds that Terra Labs’ CEO Do Kwon utilized a lot of his own Terra (LUNA) tokens to vote for the hard fork, though nothing has yet been proven. At the time, the sentiment within the community seemed to be to burn Terra (LUNA) tokens. However, Do Kwon described token burning as “useless”, and elected not to heed the requests. Interestingly enough, the community’s trust in LUNA 2.0 seems to have hit rock bottom now, after Do Kwon set his Twitter profile to private. The absolute lack of trust in the project has resulted in the mass sell-off of the token, and South Korean authorities have issued a warning to investors not to “gamble” on Terra’s comeback.

2-for-1 Death Spiral for Terra (LUNA)

The original Terra coin, which was rebranded as Terra Luna Classic (LUNC) following the fork, is still experiencing hard times in the market, and the comeback plan appears increasingly desperate. At press time, Terra Luna Classic (LUNC) is trading at $0.00006177, according to CoinGecko marking a 14.7% decrease in the last 24 hours, 46.5% over the last 7 days, and an eye watering 66% deficit from the last fortnight.

The freshly-released Terra (LUNA) coin had its moment in the sun 11 days ago, recording an $18.87 ATH. However, since then, the native coin of LUNA 2.0 has fallen flat on its face. At the time of writing, Terra (LUNA) is trading at $3.58, which is 16.9% less than 24 hours ago, and a 62% plunge compared to a week ago. Just 4 hours ago, LUNA 2.0 even hit its lowest point of $3.36, but has managed to regain 3.9% of its value since then.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Tadas Klimasevskis is a blockchain journalist and content creator, focusing on the latest tendencies of the crypto world and digging deeper into specific innovations like music NFTs, gaming NFTs and Metaverse. Vast experience in social media lets Tadas quickly spot what’s going on in the crypto industry and deliver a story with a unique spin.