Is Terra Relaunch A Promising Idea? Built Atop Investors’ $40M Of Lost Money 

• Terra’s collapse was a shocking one for the crypto community as investors lost massive funds following that. 

• Do Kwon came up with the network’s relaunch soon after the meltdown but is it really a good idea?

• Luna is currently trading at $6.46 with a market cap of $1,362,344,808. 

Terra ecosystem’s latest breakdown was in the limelight for a long time. Its TerraUSD (UST) depegging and LUNA’s slippage to zero left the investors with a loss of around $40 billion. 

As a result, the Terra ecosystem witnessed high criticisms from a lot of entities like Changpeng Zhao, the Binance CEO. Despite all this, the Terra CEO, Do Kwon, re-introduced the network with a new chain known as the Terra 2.0 (Phoenix-1).

The altered proposal for the network’s relaunch by surging the genesis liquidity introduces a new liquidity profile for pre-attack Luna Classic (LUNC) holders and further lessens the distribution to post-attack TerraUSD Classic (USTC) holders and was approved with a majority votes of 65%. 

Following a hard fork, the new blockchain went live on May 28. The new token remains with the name Terra (LUNA), while the old one got rebranded as LUNA Classic. After the launch of the new network, the LUNC, USTC, and Anchor Protocol UST (aUST) holders were eligible to get the new tokens. 

After the massive breakdown of the network, Terraform Labs and Do Kwon have witnessed several investigations and lawsuits in South Korea. But primary exchanges like FTX, Binance, Kucoin, Bitfinex, etc., have still shown their support for the Terra 2.0 chain. 

But it seems like even the new Terra network could not stay from controversy as a lot of investors asserted that they were not compensated properly for the new airdrop. 

Many users even highlighted sarcasm on Twitter as to how the new airdrop is nothing less than a mockery as they have lost hundreds of thousands of dollars and just got $50 worth of the new tokens. 

The new token showed higher price fluctuation on just the first day of its relaunch, slipping by more than 70%. And several investors who got the token via airdrop sold them asap, signifying minimal confidence in it. 

Though LUNA was listed at around $18 on the relaunch day, at the time of writing, it is trading at $6.46 with a market cap of $1,362,344,808. 

There is also this popular meme being circulated after the Terra incident, comparing the fate of two fund managers. 

Though Do Kwon has also been in the limelight earlier due to failed projects, let’s see if folks would show any great confidence in Terra 2.0. It is also to see what the investigations and lawsuits against the founder and team would result with. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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