It has been a rough few weeks for everyone in the cryptocurrency market, with the collapse of the stablecoin Terra.
Despite this, the company’s creator, Do Kwon, is not giving up. The makers of Terra reintroduced a new version of Luna, the cryptocurrency connected to Terra, on Saturday. This new version of Luna was expected to assist in maintaining the stablecoin tied to $1.
Unfortunately for everyone who supports Terra and Luna, the project that is now being termed Luna 2.0 is already failing.
“Yesterday, we said Terra 2.0 is coming. Tomorrow, it arrives,” tweeted the official Terra developer account on Friday. “The community has been working around the clock to coordinate the new chain’s launch. Subject to potential change, we expect Terra to go live on May 28th, 2022, at around 06:00 AM UTC.”
It was confirmed that Luna 2.0 would be released, and its price reached over $20 at its peak. According to CoinMarketCap, its current value is about $5.75, representing a decline of over 75 percent.
In conjunction with introducing the new, presumably superior blockchain, Terra intended to carry out an airdrop of Luna 2.0 tokens to the holders of the cryptocurrency running on the previous blockchain.
When an investor receives tokens as a reward for their investment, this is known as an airdrop. To make up for some of their losses, Terra decided to give out free copies of Luna 2.0 to owners of the prior version of the token.
After the market meltdown that occurred earlier this month, many investors discussed their experiences of losing their whole life investments in Terra and Luna. Although its value is meant to remain constant at $1, Terra is now only worth cents. Luna, which reached an all-time high value of $104 only this past March, is now worth fractions of a cent despite having attained an all-time high value.
However, at least some of those investors who lost money and were airdropped the new Luna 2.0 tokens seem to have sold off their newly acquired cryptocurrency to reclaim some of the money they lost.
The price of Luna 2.0 is presently somewhere in the $5 range. The real owners of Terra and Luna tokens are stating that the airdrop allowed them to regain a fraction of the value of their initial investment.
However, based on the responses of some of the former holders, there is considerable mistrust in the new project that Do Kwon and the rest of the team that was responsible for the failures of the old Terra and Luna are working on.