Since the launch of Terra (LUNA) 2.0 on Saturday the new chain has fallen by 70% as investors sell off their airdropped LUNA 2.0
Terra 2.0, Rebranded Terra Is Down 70% Since Launch
In order to resurrect Terra, DO Kwon, the founder, and the community devised a few ideas to create a new chain called Terra (LUNA) 2.0 and rename the previous one.
In a governance vote on Wednesday, Terraform Labs CEO Do Kwon’s proposal to construct the new Terra 2.0 chain received 65.5 percent approval.
According to CoinGecko data, the new LUNA was trading under $6 on Monday morning, Asia time, after peaking at $18.87 shortly after the Terra 2.0 blockchain was launched on Saturday.
Holders of LUNA Classic (LUNC) and Terra Classic USD (USTC, formerly UST) received 70% of LUNA 2.0, with vesting and cliffs differing according to the quantity and length of holdings.
Investors Sell Off Their Airdrop
Terra decided to airdrop Luna 2.0 tokens to holders of the coin on the old blockchain in conjunction with the launch of the new network.
However, it appears like at least some of the investors who lost money and received the new Luna 2.0 tokens have sold their new crypto to recuperate part of their losses.
The Public Still Don’t Trust New Project
Critics of Terra 2.0 have questioned how the project would survive without a native stablecoin like the USTC, which was left behind in the old Terra Classic blockchain.
“The main concern is that the whole Terra ecosystem functions based on [USTC],” said Kevin Ahn, a South Korean decentralized finance (DeFi) expert. “When [USTC] is no longer a priority, the ecosystem built on Terra won’t be compatible with Terra 2.0.”
According to Terra, the new LUNA can be used in decentralized apps (dApps), staked in the Terra Station wallet, and traded on various exchanges.
LUNA is traded on Kraken, Huobi, and Bybit, while Binance, the world’s largest exchange, has added it to its dedicated trading zone for new tokens with higher risks and volatility.
