Investors Lose Confidence As LUNA 2.0 Price Drops 70%! Here Is Why

On May 28, the Terra ecosystem saw a relaunch via Terra 2.0. However the price of Terra (LUNA) price has dropped by almost 70%.

New LUNA tokens, also known as LUNA 2, are being airdropped to investors as part of Do Kwon’s revival plan (aUST). These investors are the one who previously owned Luna Classic (LUNC), TerraUSD Classic (USTC), and Anchor Protocol UST.

LUNA has plunged around 69% from its initial price of $18.87 on Saturday to around $6.10 at the time of writing, as per Coinmarketcap data.

Investors Lack Confidence In Do Kwon’s Plan

At this point, the rapid drop appears to indicate a lack of confidence in Do Kwon’s rebranding. Now many investors suggest on Twitter that they are planning to reclaim a tiny percentage of their previously lost funds and walk away from the project.

Beginning May 31, Binance will commence a multi-year distribution of LUNA to qualified users. Also investors will be allowed to trade the token in its Innovation Zone, a designated trading zone for volatile and high-risk assets.

Some members of the community, such as “lurkaroundfind,” claims to buy LUNA after the destruction. They forecasts a bear market once the Binance drop is live.

They say that Binance has “15.7MM liquid LUNA, available to customers from Tuesday.” Further they claim that investors who held Anchor Protocol initially will try to cash out as they have little interest in the Terra ecosystem.

Popular influencers in the crypto world, such as Lark Davis, have made similar observations. He informs his 988,000 Twitter followers that he has no plan to buy $luna 2.0. Also he will be dumping any airdrop received from Binance.