“Terra 2.0 is coming,” the company announced last week after Luna's collapse rattled crypto markets.
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After a spectacular crash, Terra is receiving a new lease of life with a Luna rebirth and is already live on the exchanges, but it has gotten off to a bad start.
Backers of Terra voted to revive the failed cryptocurrency Luna last week but with one big change. Luna is back without the element that caused the steepfall of the cryptocurrency two weeks ago - its stablecoin, UST.
After reaching a peak of $19.53 (€18.15) on Saturday, luna dropped as low as $4.39 (€4.00) just hours later, according to CoinGecko. It is now around the price of $5.90 (€5.48).
“Terra 2.0 is coming,” the company wrote on Twitter on Wednesday when it announced the news.
“With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community”.
What does the new Terra look like?
According to Terra, Terra 2.0 will “effectively create a new Terra chain without the algorithmic stablecoin.”
“The old chain will be called Terra Classic (token: $LUNC), and the new chain will be called Terra (token: $LUNA). The chain upgrade will commence a few hours after the Launch snapshot,” Terra announced on Twitter.
The new Terra effectively creates a new blockchain associated with the Luna token. The old Luna will be replaced by Luna 2.0, completely severing ties with the failed stablecoin.
But the old Luna will not disappear completely, it will simply co-exist with the new and improved Luna 2.0. Holders of the old Luna, now renamed Classic, and UST will be given part of the 1 billion new tokens.
Luna holders will receive about 35 per cent of all new tokens, 10 per cent will go to those who held UST before the collapse of the cryptocurrency, 25 per cent will go to traders who still own Luna and UST after the crash and 30 per cent will go to a pool of Luna investors.
Terra will become a completely community-owned chain.
Is this going to work?
After the massive Luna crash, the cryptocurrency market was deeply shaken by the loss of $60 billion (€55.8 billion).
And yet, it appears investors are intrigued by the Luna rebirth. Luna surged more than 20 per cent on Wednesday after Terra’s announcement, according to data by CoinGecko. Even UST was up over 50 per cent.
Getting rid of the stablecoin that made Luna crash in the first place could increase the possibility of the new crypto being successful, but anything goes in this volatile crypto market.
FAQs
Fizzle. You probably heard about Terra's catastrophic downfall in May, when – between the collapse of its stablecoin and its Luna token – the former blue-chip blockchain lost $60 billion of value. Well, in a frantic bid to reinvent itself, Terra has now forked into two separate blockchains.
Can Luna be revived? ›
Luna Classic (LUNC) may see a revival, but it's essential to exercise caution and make informed decisions based on market conditions and project fundamentals.
Why is crypto tanking again? ›
The recent decline in the crypto market over the past 24 hours is linked to significant liquidations in the derivatives market, totaling over $376.63 million. Of this amount, nearly $295.73 million were long liquidations. Long positions are bets that the price of an asset will rise.
Will Terra ever rebound? ›
Gradual growth: If Terra's projects gain traction and its stablecoin UST maintains its peg to the US dollar, LUNA could see a gradual rise in price, potentially reaching $3-$4 by the end of 2025.
Can Luna 2.0 reach $1000? ›
That is a frequently asked question, and in my opinion, Terra (LUNA) will most likely not reach $1000 by the end of 2025. This is only possible if demand for stablecoins on the Terra network skyrockets. But that doesn't mean it's a bad investment.
Is Luna 2.0 a good investment? ›
CoinPedia experts would say that it's a smart move to buy and hold LUNA right now. “If the network manages to regain the trust of the crypto community, with developments and community-building initiatives,” it says, the coin could reach nearly $250 by 2025, making it a solid long-term investment.
Will crypto ever recover? ›
Slowly and surely, yes cryptocurrency would recover Here's an illustration Ethereum (ETH) is the world's second-biggest cryptocurrency, behind Bitcoin (BTC). It was launched in July 2015 and first traded on August 7 for $2.77. The next day, the coin's value had fallen to $0.81.
Which coin will reach $1 in 2024? ›
In the dynamic landscape of cryptocurrency, these ten coins, including TRON, Shiba Inu, Astar, Kaspa, Dogecoin, Stellar, Kava, Polygon, Cronos, and VeChain, present diverse potentials for reaching the $1 milestone in 2024.
Why did crypto crash so hard? ›
High inflation and tighter monetary policy affected crypto investors as well, resulting in the collapse of the market.
Will Luna recover to $1? ›
Current market conditions play a crucial role in the trajectory of Luna Classic's price. Although there's an ongoing discussion about mechanisms like a Luna tax to aid its recovery, LUNC reaching the $1 milestone is widely seen as highly improbable without a notable shift in market dynamics and tokenomics.
In general, there exists a theoretical possibility that LUNC might perhaps achieve a value of $0.01 in the future, however this outcome poses a significant obstacle. Despite a burn rate of 90% and an annual price rise of 50%, the projected timeframe for the value to reach 1 cent ranges from six to 10 years.
Will Luna reach $10? ›
Luna Classic will soon reach the 10 Mark. Terra Luna Classic Value Forecast the cost breakdown of Luno reveals that it has recently been at a low point.
Why is Luna price dropping? ›
UST's value slipping below $1 triggered panic, causing a rush to exit. Users exploited the system to convert UST to LUNA, inflating LUNA's supply drastically. Within days, LUNA plummeted by over 99.99%, leaving holders with worthless bags of LUNC and USTC.
Why did Luna collapse? ›
LUNA and UST construct the basic ecosystem of the Terra blockchain, which makes them highly dependent on each other. In other words, the depeg of UST can drive risk in the Terra ecosystem, which was what eventually lead to the shocking crash of the Terra-LUNA project.
Will Luna coin rise again? ›
According to our current Terra price prediction, the price of Terra is predicted to rise by 226.68% and reach $ 2.10 by July 3, 2024. Per our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 73 (Greed).
Will Luna Classic recover to $1? ›
Current market conditions play a crucial role in the trajectory of Luna Classic's price. Although there's an ongoing discussion about mechanisms like a Luna tax to aid its recovery, LUNC reaching the $1 milestone is widely seen as highly improbable without a notable shift in market dynamics and tokenomics.
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