New Terra (LUNA) Drops by 70% Since the RelaunchMay 30, 2022
The new LUNA token was trading under $6 on Monday, Asia time, after peaking at $18.87 shortly after the Terra 2.0 blockchain was launched on Saturday.
Holders of LUNA Classic (LUNC) and Terra Classic USD (USTC, formerly UST) received 70% of LUNA 2.0, with vesting and cliffs differing, according to the quantity and length of holdings.
Critics of Terra 2.0 have questioned how the project would survive without a native stablecoin like the USTC, which was left behind in the old Terra Classic blockchain.
“The biggest problem is that the entire Terra ecosystem relies on [USTC],” said Kevin Ahn, a decentralized finance (DeFi) expert from South Korea. In addition, Kevin Ahn said, “When [USTC] is no longer a priority, the Terra ecosystem will no longer work with Terra 2.0.”
In a governance vote on Wednesday, Terraform Labs CEO Do Kwon’s proposal to construct the new Terra 2.0 chain received 65.5% approval.
New LUNA can be used in decentralized apps (dApps), staked in the Terra Station wallet, and traded on various exchanges, according to Terra.
LUNA is traded on Kraken, Huobi, and Bybit, while Binance, the world’s largest exchange, has added it to its dedicated trading zone for new tokens with higher risks and volatility.