Terraform Labs unveiled a new version of the Terra blockchain, “Terra 2.0,” on Saturday morning, including newly generated LUNA tokens.
After the LUNA 2.0 cryptocurrency experienced a significant price drop hours after its introduction on May 28, the recovery plan following the collapse of Terraform Labs’ stablecoin TerraUSD (UST) and its native token Terra (LUNA) began on a bumpy path.
The Terra community speculated that the new governance token would be worth around $30-50 (roughly Rs. 2,325- 3,875). Instead, it quickly shot up to an all-time high of $18.87 (roughly Rs. 1,462) shortly after launch, only to crash to a low of $4.08 (roughly Rs. 316) by early Sunday.
New LUNA tokens, also known as LUNA 2, were airdropped to investors who previously owned Luna Classic (LUNC), TerraUSD Classic (USTC), and Anchor Protocol UST as part of Terraform Labs creator Do Kwon’s resurrection plan (aUST).
At this point, the rapid drop appears to indicate a lack of confidence in Do Kwon’s rebranding going forward, with many investors suggesting on Twitter that they are instead attempting to recoup a tiny percentage of their previously lost funds and walk away from the project.
Why did LUNA 2 airdrop on May 28?
The main goal of the May 28 airdrop of fresh LUNA coins was to pay Terra Classic chain stakeholders. Therefore, they will get 70 percent of the total LUNA 2.0 token supply or 700 million tokens. According to an official notification, each user’s amount of LUNA 2.0 airdrop depends on whether the tokens were owned before or after the UST depeg.
The airdrop should be claimed soon after the launch, either via centralized exchanges or Terra’s site. Several major crypto exchanges like Binance, Huobi, Kraken, Bitfinex, Bitrue, Kucoin, and Bybit, have announced that Terra backers would be able to acquire their tokens via their platforms.
Lark Davis, a well-known influencer in the area, stated that he had no intentions of purchasing LUNA 2.
