Expectations are already falling short for the new Terra blockchain, which went live just about a week ago. Terra 2.0 launched on May 28 as part of the “Terra revival” plan in a community-approved proposal by Terra co-founder Do Kwon. The original Terra blockchain, after its collapse, was abandoned and rebranded as Terra Classic. The new Terra blockchain, which does not support stablecoins, already has seven projects launching on it.
LUNA 2.0 took off with a shaky start, as reported, shedding nearly 70% within 24 hours of launch.
Since then, the average price of the LUNA 2.0 token has stayed beneath $11. At the time of publication, LUNA was changing hands at $4.72, down 26% in the last 24 hours, per CoinMarketCap data. On May 6, the old LUNA was trading at around $86 before the TerraUSD (UST) stablecoin lost its dollar parity.
Here is what the market thinks about Terra 2.0
As previously reported, while Terra seemed quite hopeful about the success of this new chain, few are quite so optimistic.
“There’s a big question mark. Whether that will be successful will take a lot of rebuilding trust with investors and builders, “Felix Hartmann, managing partner of Hartmann Capital, commented in response to the newly launched terra blockchain.”
According to Hartmann, Terra’s rebuilding from the ashes is worth watching since it will likely start from the bottom up, but it will also require a lot of grinding on the part of the founders because they will no longer have billion-dollar market valuations. “So it’s something worth watching,” Hartman continues, “but the real fruition—if it ever happens—might take a year or two, certainly not this month.”
Terra’s ecosystem collapsed in May following the Terra UST depegging. Following a sharp price drop, the original LUNA completely lost all of its worth, with billions of losses recorded. Changpeng Zhao, CEO of Binance, has disclosed that the company lost almost $1.6 billion of its LUNA investment at the top.