Terra has been reborn as Terra 2.0 following the approval of Terra’s recovery plan, put forward by Do Kwon, the founder of Terraform Labs. However, its new token is already down by more than 70% despite a promising start.
Terra 2.0 Launch and Airdrop
On May 28th, 2022, at around 06:00 (UTC), Do Kwon announced the launch of Terra 2.0. With Terra 2.0 now active, the original Terra (LUNA) has been renamed LUNA Classic (LUNC), while TerraUSD (UST) is now TerraClassicUSD (USTC).
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With the launch, 70% of the supply of LUNA 2.0 tokens were airdropped to users. The quantity of tokens received by each user was determined by the type and number of tokens they had held on the Terra Classic chain.
Terra 2.0 Plunges 70%
Terra 2.0 launched with an initial listing price of $0.5, but quickly rocketed to achieve a high of $19.54, according to CoinMarketCap.
The positive news was short lived though, as investors began to dump the coin in the hours that followed, causing LUNA to tank. The sell-off resulted in LUNA losing more than 70% of its all-time high value.
The 72 hour price chart for Terra 2.0 (LUNA). Source: CoinMarketCap
The price of LUNA fell from as high as $19.54 to as low as $3.63 on May 28th. However, in the wake of the intense sell-off, Terra has begun to show signs of recovery, and the Altcoin is trading at $6.01 at the time of writing—75% higher than its launch date low.
The 24 hour price chart for Terra 2.0 (LUNA). Source: CoinMarketCap
On the Flipside
- Experts have expressed concern about the sustainability of Terra 2.0 with the absence of USTC, since the original Terra ecosystem functioned around the algorithmic stablecoin.
Why You Should Care
The initial offloading that sent LUNA’s price spiralling is believed to have been caused by investors of the original Terra, who were looking to recoup part of their losses via the new airdropped token.
To learn more about the launch of Terra 2.0, read:
Terra Announces Rebirth Date, Gets Support from Major Exchange
For more information on the challenges faced by Terra, check out:
Binance CEO Calls Terra Luna & UST Mechanism “Stupid”
Wall Street Investor Compares the Terra Case to a “Pyramid Scam”
