After the crash, the LUNA currency changed to a new chain and made a comeback, and it plummeted by 70% for a long time after going online.

In the “currency circle” where bad news has been frequently reported recently, the major event that has to be mentioned is the collapse of the cryptocurrency LUNA coin on Terra. The assets of cryptocurrencies, which once reached tens of billions, fell to close to zero in a short period of time, which also caused the assets of countless investors to "return to zero".

This algorithmic stablecoin that caused the "quake in the currency circle", although it seems to be quite formal, is actually just an algorithmic game full of "Ponzi scheme". After starting to de-anchor from the UST stablecoin, the market of LUNA coins was chaotic.

▲ Picture from: coinmarketcap

Although after a short-term price recovery, it still failed to resist the collapse of the cryptocurrency LUNA, falling all the way to less than $1. Judging from the current price of $0.0001683, the former LUNA coin can be said to be "exhausted".

But TerraForm Labs and founder Do Kwon, the company behind Terra, have not given up. The LUNA coin started crashing in early May, and less than a month later, the new Terra 2.0 went live on May 28, 2022 at 6AM UTC.

▲ Picture from: Twitter

According to Do Kwon's "Renaissance Plan" and his emphasis on the current Terra ecosystem is more important than UST. The original Terra blockchain was divided into new and old chains. Terra 2.0 on the new chain uses the name of the LUNA token, but does not adopt the previous mechanism associated with the UST algorithm stablecoin, and the old chain is renamed Terra Classic (the token is changed to LUNC).

▲ Picture from: Twitter

In the Terra 2.0 plan, in order to compensate holders of UST and LUNC tokens, new LUNA cryptocurrencies will also be "airdropped" to these holders. The amount of new cryptocurrencies airdropped varies depending on how much and how long they are held.

▲ Picture from: Mashable

Terra has officially launched the airdrop now. The exchanges that support Terra 2.0 include FTX, Bitfinex, GateIO, Huobi, Kucoin, Bitrue, Bybit and Binance, etc. However, the processing speed of the major exchanges is not consistent at present. However, the behavior and reaction of the new currency holders who received the "airdrop" were quite "tacit understanding".

▲ Picture from: Twitter

After the opening, the highest price of Terra 2.0 once reached $19.54, but it could not stop the rapid decline. The current price has fallen by more than 70%, hovering around $6. Investors who lost money and airdropped the new Terra 2.0 (LUNA coin) also appear to have sold the new coins they received to cover some of the losses, although it was only a drop in the bucket.

▲ Picture from: coinmarketcap

Before the launch of the new coin, the Terra team mentioned on the official Twitter account: "Terra 2.0 brings the same ideals that you first fell in love with, world-class UI/UX, our amazing LUNAtic community, And a deep and talented pool of developers to build DeFi.”

▲Image from: CoinGape

The impact and consequences of Terra's "quake in the currency circle" have not completely dissipated. No matter how you look at it, now does not seem to be a good time to launch Terra 2.0, judging from the current market reaction. While the team remains ambitious, many investors have lost faith in it. In the future, I don't know how many people will be able to "wish the bait".

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