Within 72 Hours Since Its Launch, Terra LUNA 2.0 Crashes by 57%

Key Insights:

• Terra LUNA 2.0 launched at a price of $19.53 and is currently trading at $8.9.
• Every major cryptocurrency exchange is supporting the launch of Terra 2.0
• However, skeptical investors are dumping the new LUNA token airdropped to them.

The fall of Terra will be remembered as the biggest disaster in the history of crypto, but the team behind the blockchain is not giving up.

Terraform Labs launched the new Terra 2.0 three days ago in the hopes of bringing its investors back to the network, but it seems like these investors have a much different plan for the token.

Terra LUNA 2.0 Disappoints at Launch

Launched with a circulating supply of 210 million LUNA and a max supply of 1 billion LUNA, Terra 2.0 set out to reinitiate the blockchain and bring back all the DeFi protocols it had on the chain previously.

As for the investors, Terra began airdropping tokens to individuals who already held the now LUNA classic token (LUNC). While announcing the same, Terra highlighted the multiple use cases new LUNA would have by tweeting,

“Users can do multiple things with their liquid $LUNA, including staking it on Terra Station to their preferred validator(s) to earn rewards & participate in governance decisions, using it on dApps upon launch, or trading it on an exchange.”

The listing of the new LUNA was also supported by almost every major cryptocurrency exchange. Binance even participated in airdropping and distributing the tokens to users by categorizing them based on their holding.

However, this did not sit well with the investors. Most of the users were initially ineligible for the new LUNA airdrop as they had already sold it as soon as the price began falling around May 5.

By the time the new plan could be announced, most of them had already exited the LUNC market.

But the ones that were still holding onto LUNC haven’t been particularly supportive of the coin either, as they are dumping the new LUNA token as soon as they receive it. 

The cause of the new crash

As a result of the dumping, LUNA once again crashed within the last 72 hours. After launching at $17.8, the altcoin rallied to touch $19.5 before falling to $4.19 over the next few hours.

Although the price recovered slightly in the last 24 hours, it still stood way below it was at launch, trading at $8.4, marking a 57% decline.

It is way premature to be declaring whether or not Terra can recover from the new adversity and regain investors’ faith and confidence, but it will certainly take a long time for it to reach its earlier highs.