Terra Unveils New Blockchain, LUNA Plunges 65%+
Today, Terra (LUNA) initiated the launch of its new blockchain, which was then followed by an airdrop of new LUNA 2.0 coins to users as a part of a larger strategy for the revitalization of the project. The holders of LUNA wallets who are qualified for the LUNA airdrop may now check the balances of their wallets on the new chain.
Launch of a Brand-New Token: On Twitter, Terra sent the following message: “Today marks the beginning of the next chapter for the Terra community; one in which our potential knows no limitations and our collaborative creativity may bloom.”
It is anticipated that popular apps will transfer to the new blockchain, which will be known as “Terra Classic,” while the existing network will retain its current name.
The cryptocurrency market is not completely convinced with LUNA 2.0. Mark Cuban, who is worth a billion dollars, had previously said to Fortune that he would not invest any money in Luna 2.0, so casting doubt on the future of the project before it had even begun.
“A significant question mark may be seen here. In order to determine whether or not it would be effective, a significant amount of trust has to be rebuilt between investors and builders.” In an interview with CNBC, Felix Hartmann, managing partner of Hartmann Capital, said the following:
“The concept of algorithmically stable coins has been abandoned. There are several others out there, but they are not quite as large as UST. They are all now experiencing some level of failure in their attempts to preserve the peg,” Omid Malekan, a veteran of the cryptocurrency business and adjunct professor at Columbia Business School, made this statement.
On Thursday earlier this week, a governance vote on Terra’s proposal 1747 to burn 1.388 billion TerraUSD was successful, and the plan was approved. Because of this action, the UST’s supply was decreased by around 11 percent, bringing it down to 11.28 billion total.
The depegging of the TerraUSD currency in May led to the collapse of the Terra ecosystem. Since it was introduced earlier in the day, the Luna 2.0 token has seen a price drop of almost 65 percent, falling to $5.22 in trade on Saturday evening. Earlier in the day, the token’s price hit a day’s high of $19.54.