Terra Launches LUNA 2.0 Which Plunges 70% 24 Hours Later

Terra Labs finally launched LUNA 2.0 on May 28th, albeit to an inauspicious start. The new blockchain began life on the mainnet on May 28th as planned, with an accompanying airdrop of LUNA tokens. The revamped digital currencies were disbursed to existing owners of the old LUNA token. However, one noticeable difference in the Terra network rebirth is the absence of an algorithmic stablecoin.

LUNA’s Rocky Start Draws Reaction from Crypto Community

LUNA plunged more than 70% within 24 hours of its launch, raising questions about the sustainability of this reintroduction. The token initially peaked at $19.54 early Saturday before plummeting to $5.18, according to CoinMarketCap data. As of press time, the new LUNA is changing hands at $5.77. In addition, data also showed that the crypto amassed around $230 million in trading volume within the past 24 hours of its launch.

Some reactions on Twitter to LUNA 2.0’s price performance include that of crypto-focused user Tajo Crypto. The user was pointing out that some people, as well as exchanges, may have earned a bit from the new LUNA. According to a crypto-focused Twitter handle:

“The people that have actually made money from Luna 2.0 are those that received airdrops and sold. But I won’t call it gains because majority of the supply is still vested. Then lots of exchanges [have] made lots of money from trading fees. Luna 2.0 will be profitable if it succeeds.”

Dogecoin (DOGE) co-founder Billy Markus was more cynical in his assessment of LUNA 2.0 on Twitter. According to Markus, “Luna 2.0 will show the world just how truly dumb crypto gamblers really are.”

In the ensuing 24 hours since launch, LunarCrash data showed more than 110,000 social mentions of Terra 2.0. In addition, there were also over 8,600 posts about Luna 2.0 per hour. Although many crypto exchanges have listed the new LUNA on their platforms, Binance is not currently one of them. The leading crypto exchange will reportedly launch LUNA trading on May 31st.

Terra (LUNA) 2.0 Airdrop

Terra owners from the classic chain will receive 70%, or 700 million, of the LUNA 2.0 token supply. In addition, the amount of LUNA 2.0 airdrop accruable to each holder depends on several factors, including types of tokens and wallet size. According to a blogpost announcement:

“The amount of LUNA you will be eligible to receive will be determined by the types of tokens you held on the Terra Classic chain, the time-period that you held these tokens (based on Pre-Attack and Post-Attack snapshots), and the quantity of tokens held.”

Furthermore, the message went on to break down the eligibility requirements and classification for the LUNA airdrop amount.

Users received the airdropped tokens via centralized exchanges or the Terra website. In addition, numerous crypto exchanges also stated that they would allow Terra supporters to receive their token allotments from within their platforms.

Only 21 million of a billion available fresh LUNA tokens were airdropped on Saturday, adding to the circulatory supply. According to reports, airdrop of the remaining tokens will come in installments.

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.