The recent Luna and UST crash was so huge that most investors were caught under the bus. They faced huge losses, as the entire value of Luna was lost in a few days. In an attempt to recover it, Do Kwon plans to release Luna 2.0, which will be made after forking the old chain. Network participants have given their go-ahead to this decision, and the network might be launched pretty soon.
Release of the Luna 2.0
The new blockchain that will be created after the forking of the old one will be called Terra, while the old one will be renamed Terra Classic. Similarly, the new blockchain’s token will be called Luna, and the old will be renamed Luna classic. Around 30% supply of the token will be airdropped to users who lost their funds in the recent crash. And even though at the time of airdrop, the value won’t match their losses, it’s expected that with price increase sooner or later, the losses of investors will recover.
However, the most essential thing that one must note about the new Terra blockchain is its independent existence. In other words, unlike the old chain, it won’t support TerraUSD (UST), which was the main reason that Luna crashed in the first place. Since it wasn’t backed by any reserves and was an algorithmic stablecoin, things went southwards when the algorithm failed to maintain the price.
If you are wondering why did Luna and UST crash? Read this blog.
Now everyone is happy with the release of Luna 2.0
Yes, Do Kwon did get the majority of votes in favor of its release. But if you think about it, that’s only because investors see no other way to recover their losses. However, many notable personalities have clearly stated that they are against this idea. Take Billy Markus, the founder of Dogecoin. He tweeted:
luna 2.0 will show the world just how truly dumb crypto gamblers really are
— Shibetoshi Nakamoto (@BillyM2k) May 25, 2022
However, Do Kwon believes that Terra’s app ecosystem has a lot of potential, and it needs to be preserved even at the expense of UST. He thinks it’s “A chance to rise up anew from the ashes.”
What are your thoughts as Do Kwon plans to release Luna 2.0? And do you think investors will be able to recover their losses from this? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.