Terra launches new chain, Luna 2.0 airdrop: tokens plunges more than 70%

On early Saturday, May 2022, Terraform Labs launched the fork of the original Luna Blockchain ‘Terra 2.0’, existing Luna and UST holders received newly minted Luna 2.0 tokens via an airdrop based on Blockchain snapshots. 

Roughly 12 hours after the launch, Luna had shed almost 73% of its original value, trading at US$ 5.77 at the time of writing, according to data from Coinmarketcap. It skyrocketed to up to US$ 30 on some exchanges like Bybit. Shortly after, it started plummeting and dumped all the way to US$ 4 before stabilizing.

Currently, Luna is trading across seven different exchanges including Bybit, Kucoin, Kraken, MEX, OKX, Bitrue and BingX. The price of Luna varied greatly on the exchanges due to the different trading volumes. Coinmarketcap recorded it has generated US$ 150,836,128 in trading volume as of date, almost 50% is traded on Kucoin.

Data from Cryptocompare shows that Tether (USDT) comprises a majority of Luna trade after ETH. Luna is also paired with fiat currencies including USD, CAD, EUR, PHP, INR and IDR. 

Terra 2.0 is controversial 

Responses to Terra 2.0 have been mixed. ‘Luna2’ and ‘Luna 2.0’ have been trending on social media as holders receive their airdrops,led by Finland, Spain and the Netherlands, with some asking where they can trade the new token. 

Phoenix Finance stepped up to become the main DEX on Terra 2.0, launched alongside Terra 2.0 to enable more Dapps built on the old Terra chain to relaunch on the new one. 

‘Credibility is the ultimate currency,’ Binance CEO Changpeng Zhao wrote in a Twitter post shortly after Terra 2.0 launch. Binance has also announced that they are committed to supporting the Terra revival plan. It confirmed that it has begun a collaborative partnership with Terra in a Twitter post.

Some are more skeptical about Luna, Galois Capital criticized the launch on Twitter, writing, ‘Rug me once; shame on you. Rug me twice; shame on me.’

Crypto influencer Ben Armstrong wrote on Twitter ‘Don’t buy Luna ever again. Not 2.0, not 3.0, not 3.14.’ 

Photo: Pixabay