After TerraUSD(UST) failed the project, Do Kwon and his project team Terraform Labs launched a rescue plan creating Luna 2.0 Blockchain.
No matter if it is a new project still their past haunts them. Yes, it seems like they have failed once again.
After Luna 2.0 debuted on May 28, it nearly plunged over 70% in the first 24 hours. The debut price was $17.8 according to Coinmarketcap.com and at the end of the first day, it was trading at around $6.00.The worst thing is it even touched the low mark of $4.00. Somehow it was able to climb a little amount.
In the beginning, it almost touched the $20 mark but somehow after the Terraform Labs successfully distributed the LUNA 2.0 token to the investors a sudden drop was created. Terraform Labs distributed the new LUNA 2.0
tokens to old investors who owned LUNA classic (LUNC) and TerraUSD(UST). With its first day’s downfall, the new Luna project seems like recovering, despite its still trading below the price it launched at $17.8 price. At this moment it is trading at a price of $8.88 according to Coinmarketcap.com.
So why is Terra down?
Now, this is the biggest question, Why did this fail to gain momentum? So the basic matter is investors still don’t trust this project. Despite its change still people hesitate about the whole project including the Project team.
Many exchanges delisted the previous version of LUNA. With Do Kwon’s new plan many recognized crypto exchanges started accepting to launch on their platforms. However South Korean exchange did not list this new project because of Do Kwon’s trust issues.
He is still required for government investigations and still, he has not faced them. Kraken, Bitrue, Kucoin, By bit, Nexo, Bitfinex, Lbank, and Bitget listed the token before its official launching. After the official launch, those exchanges listed the token for investors.
The world’s biggest Cryptocurrency exchange Binance was neutral at the first stage but recently they made an official statement that they are now all set to list Luna’s new project in the Innovation Zone.
The announcement was made after Binance completed the distribution of Terra (LUNA) Airdrop distribution to Terra Classic $LUNC and TerraClassicUSD( USTC) holders.
Did the Airdrop Fail?
After the previous project crashed investors lost Million. So the Terraform labs team planned to distribute airdrop LUNA tokens to affected investors to recompense for their losses.
However, this also did not work properly and went wrong for Terraform labs. May investors had complained that they have not fully received their promised airdrop distribution.
After this, the Terra team confirmed that they are fully aware of the situation and they are working on a solution.
As I previously mentioned about Do Kwon’s trust issues in South Korea, The government is taking some significant steps to examine Terra’s controversy, while protecting investors.
After the Terra crash, most governments are keen on crypto regulations. Especially the South Korean government has appointed a digital asset committee that will deeply focus on Digital assets.
At this moment market is highly volatile. So everyone should be really careful. Now the matter is there are some people who still believe in this Terra project. So they still hope for the green mark for this Terra project. Some have already lost their faith.