Luna is a cryptocurrency based in South Korea tied to Terra. Supposedly, Terra will be tied to the US dollar which would work as a mechanism that will let people trade one coin for another if either of the two is underpriced.
The volatility of the crypto market has made Luna collapse just like the other cryptocurrencies. Many investors of Luna/Terra thought that the price of Luna is too risky to invest in. That is why they started selling the coin that made it collapse.
After the fall of Terra, the entire crypto market is trying to recover. Do Kwon, the founder of Luna did not give up. The good news is that the developers of Terra relaunched the new version aiming to help the coin pegged to US$1.
Launching of Luna 2.0
Since it’s relaunched on May 28, 2022, Luna 2.0 has hit nearly US$20 and its current value is US$5.75. Terra is planning to airdrop the tokens of the new version of Luna on the old blockchain. It is one way of making up to the previous holders of Luna for their losses.
The current price of Luna 2.0 is ranging from US$5. Despite that many Luna holders sold their tokens, some reported that the airdrop helped them to recoup at least some percentage of the original investment. However, the negative reactions of the previous investors of Luna have led to distrust in Terra’s new project.
The new version of Luna is rebuilding its momentum. It surges to 40% and attracted over $850 million in trade volume after it was listed on Binance. According to CoinMarketCap, Luna 2.0 has reached $8.18 in trading value and a $1.8 billion market capitalization.
The new version of Luna follows the depeg algorithm. Terra 2 tokens were distributed with varying levels. The network validators of Terra took the revival plan of pushing the token live despite the minimal backup of the community members.
Several exchanges like ByBit and KuCoin supported the airdrop project of the new Luna token. The initial increase on ByBit is $30, but it lost over 80% of its value in a short while. The old Luna tokens were converted to LUNA classic or LUNC. Two months ago, the market capitalization was $40 billion. Presently, it was down to $700 million.
Takeaway
Investing in crypto can make or break your finances. It is possible, especially if you don’t have any idea about the token you want to invest. With this, it is essential to know first the coin before deciding to invest.