Terra 2.0’s new LUNA has lost 70% of its value after relaunching
Following the Terra 2.0 blockchain’s debut on Saturday, the new LUNA traded for under US$6 on Monday morning Asia time, according to statistics from CoinGecko.
A 70% stake in LUNA 2.0 was distributed to holders of Terra Classic USD (US$UST, previously US$USTC) and the LUNA Classic (US$LUNC) token. The stake distribution was based on the time and number of the tokens held.
According to Terra 2.0 detractors, without a native stablecoin like as the USTC, the project would not be able to sustain itself.
As a South Korean DeFi specialist, Kevin Ahn expressed worry that Terra’s whole ecology was reliant on [USTC]. “The ecosystem developed on Terra will not be compatible with Terra 2.0 when [USTC] is no longer a priority.”
Do Kwon, Terraform Labs CEO, won 65.5 percent of the vote on Wednesday to establish Terra 2.0, Terra’s new chain.
Decentralized apps (dApps) will be able to utilise the new LUNA coin, as well as stake it on the Terra Station wallet, and sell it on select exchanges.
In Kraken, Huobi, and Bybit, LUNA may be traded, while the world’s biggest exchange Binance has put LUNA in its trading zone for tokens with more risk and volatility.