News
LUNA 2.0 price drops 67% hours after its launch
In the hours following the launch of LUNA 2.0, the cryptocurrency suffered a significant price correction, plunging by over 67%. Read what the crash means for Terraform Labs future below.
Advertisement
The crash has investors wondering whether Terraform will be able to make its comeback.
Seems like the recovery path for Terraform Labs is going to be a rocky one. The company’s redemption plan after the downfall of its stablecoin TerraUSD (UST) and its native token Terra (LUNA) already suffered a major blow. Just hours after its launch, the LUNA 2.0 crypto went through a substantial price correction.
By the time of its press release, the value of the LUNA 2.0 token had dropped over 67%. According to CoinMarketCap data, it went from $17.8 from the launch price to $5.78. The plunge comes shortly after Terraform Labs was able to distribute the new LUNA 2.0 tokens. The new and improved token was airdropped last Saturday and its maximum circulating supply is capped at $1 billion.
LUNA 2.0 main features
As stated by Terraform Labs, the LUNA 2.0’s release is under the Terra 2.0 mainnet – Phoenix-1. In its official announcement, Terraform said that wallets, node services and explorers should follow the mainnet and go live at a later date. Furthermore, the LUNA 2.0 token has no relation with its first version. The new crypto is based on a genesis blockchain. It starts from block 0 and has no dApps on its initiation.
The LUNA 2.0 launch comes after some of the most well recognised crypto exchanges listed the token, allowing its investors to trade in the asset. Companies like Nexo, Bitrue, Kraken, Kucoin, Lbank, Bitget, By bit and Bitfinex all showed their support for Terraform.
Other than the exchanges, several of the most important crypto ecosystems also announced their commitment to assist in the resurrection of Terra’s projects. The number one name in the market, Binance, stated it would provide support and investments to projects cogitating a migration from the Terra system through the BNB Chain.
Still, the LUNA 2.0 price drop does not correspond with the general public’s interest in the token. In early May, the interest in “Luna 2.0” on Google Search had a score of 8. On May 15, it surged to 100.
LUNA 2.0’s launch was decided through a voting exercise by Terraform’s community members on May 25. The new token is part of Terraform Labs’ founder Do Kwon’s comeback plan after Terra investors lost billions of dollars worth of coins during Luna’s collapse.
You will be redirected to another website
By submitting this form, I agree that I am 18+ years old and I agree to the Privacy Policy and Terms and Conditions. I also provide my signature giving express consent to receive marketing communications via automated emails, SMS or MMS text messages and other forms of communication regarding financial products such as credit card and loans. Message frequency varies and represents our good faith effort to reach you regarding your inquiry. Message and data rates may apply. Text HELP for help or text STOP to cancel. I understand that my consent to receive communications is not a condition of purchase and I may revoke my consent at any time.
Do Kwon’s fraud allegations
With a big section of the crypto community blaming Kwon for Terra’s crash, the Terraform Labs’ founder has found himself as the main focus of the collapse. Not only that, but Kwon is currently facing fraud accusations over the Mirror Protocol as well.
After its breakdown, the LUNA crypto continued to take big losses. Its market capitalization dropped significantly below the $1 billion mark. However, the collapse generated interest around Terraform’s original token. The hype around the crash was also powered by a short-lived rise as investors injected more money.
Since the crash, many cryptocurrency expert companies have tried to determine what exactly went wrong with Terraform’s network. According to Nansen’s research team, the collapse in the network was most likely due to an attack by a single person.
Are you a crypto trader? Then follow the link below for the latest news about Bitcoin prices and what could still impact its growth.
Bitcoin growth could suffer from macroeconomics
Bitcoin's been on a path to price recovery, but there are still many factors that could affect its growth. Read more to learn what they are.
Aline Barbosa
Trending Topics
How to get your American Express® Green Card: easy application to earn rewards and premium benefits
In this American Express® Green Card application guide you will learn how to get this card in just a few minutes!
Keep ReadingHow to join Live Better App easily
Join Live Better app today and get rewards for responsible financial behavior. Follow our Live Better App application.
Keep ReadingBest student credit cards for students with no credit
We've compiled a list of the best student credit cards that won't require you to have any previous credit history. Find out more here!
Keep ReadingYou may also like
PenFed Platinum Rewards Visa Signature® Card review
Looking for a great rewards card? Check out our PenFed Platinum Rewards Visa Signature® Card review to see if it's the right fit for you!
Keep ReadingCigna Health Care Insurance Plans: Transforming Lives
Get the facts about how Cigna Health Care Insurance Plans can improve your life with its full range of coverage options.
Keep ReadingBank of America® Premium Rewards® Elite review
Looking for a high rewards rate on dining and travel? Check out this Bank of America® Premium Rewards® Elite review!
Keep Reading