The new version of the cryptocurrency Luna falls to $5.98 or down more than 70% after the blockchain Terra relaunched last May 28.
How did it get from here
When Luna’s price tanked along with the price of TerraUSD (UST), the algorithmic stablecoin it was paired on, Terra’s founder proposed a hard fork of the Terra blockchain to save it. “We’ve built up one of the largest and most vibrant developer ecosystems in crypto, with some of the smartest minds in the world working on products with the best UI/UX,” he said at that time. Read the entire proposal of Do Kwon here, which involves airdropping the new version of Luna cryptocurrency to past holders:
Following this announcement, many critics, notable Changpeng CZ Zhao of Binance vehemently opposed Do Kwon’s idea, stating flat out that the idea would not work.
CZ pointed out the potential issues with forking Terra and noted that “minting, forking, don’t create value.” Then the Binance CEO suggested an ideal way to revive the token’s value is to buy back and burn its supply.
“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin. I don’t own any LUNA or UST either. Just commenting,” CZ stated.
Still, Do Kwon’s idea pushed through. On May 28, 2021, he confirmed the launch of Terra 2.0 mainnet, which was the timeline originally set. Those who were holding the old Terra (now called Terra Classic or LUNAC), the old Terra USD (now called USTC) and even Anchor Protocol UST would receive the new tokens.
LUNA 2.0 Price Collapse
Immediately after the relaunch, the new LUNA peaked at $18.87 only to begin dropping afterward. This has continued after Binance listed the new token on its so-called innovation zone, where riskier tokens can be traded.
Terra 2.0 Airdrop Details on Binance
Binance airdropped the new LUNA to eligible holders of the old coin based on the following:
- Pre-Attack 1 aUST = 0.01827712143 LUNA
- Pre-Attack 1 LUNC = 1.034735071 LUNA
- Post-Attack 1 USTC = 0.02354800084 LUNA
- Post-Attack 1 LUNC = 0.000015307927 LUNA
This means that anyone that has the old LUNA prior to the depegging event will receive an almost equivalent amount of new LUNA coins. However, those who bought the old LUNA after the depegging event will only receive 0.000015307927 LUNA.
What can be done with the new LUNA?
Terra’s team said the new LUNA can be staked and traded in exchanges like Binance, Huobi, and Bybit.
This article is published on BitPinas: Luna V2 Price Pumps Then Dumps to $5 Immediately After Relaunch
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.