Luna 2.0 experienced crash almost as soon as it appeared to the market on May 28. Terra founder Do Kwon presented it as a way to regain the losses of his investors. But something has already gone wrong.
Terra platform experienced great changes last few days.
The old chain is now Terra Classic with Luna Classic token or LUNC. And the new chain is now Terra with Luna token or LUNA.
Being dropped to the market on May 28, the new LUNA 2.0 started trading with an initial price of $18. Then the token value decreased by almost 70%.
Terra platform managers promised to airdrop reborn LUNA across Luna Classic stakers, Luna Classic holders, residual UST holders, and essential app developers of Terra Classic.
This isn’t helping as the new LUNA price vastly fell on its first day alive.
LUNA 2.0 was destined to crash?
Listed on the Coinmarketcap at night on May 28, the new LUNA token price was around $18.
It has risen then to $19.5 and fell to $8.2 immediately. So LUNA 2.0 is experiencing crash, right?
At the time of writing the new LUNA is traded around $5.7. Reddit users think that this was expected as people who lost money on the previous LUNA are trying to recoup some of their losses through the airdrop.
“Do Kwon is already celebrating the launch of his new project on Twitter but who knows how long this one will take to collapse like the previous two,” one Redditor wrote.
Some in the community are already calling LUNA 2.0 the new Kwon’s scam.
Still, it’s unknown whether LUNA 2.0 would face the same fate as its predecessor, but users can surely expect more token volatility in the coming hours.
Is it the result of unfair voting?
According to the Terra platform website, more than 65% of the community supported the new Terra 2.0 blockchain.
But the trick with voting is it could have been maintained pretty unfairly. Some Terra community members accused Kwon’s company of taking their votes.
“It’s not technically a fork, but that’s beside the point. Why did you manipulate the governance vote into pushing it through? Not have a real vote? Why are you strong-arming builders into supporting it when they don’t want to?” the Twitter enthusiast FatManTerra’s wrote.
According to the user, Luna Foundation Guard bought 221 million LUNA and staked it across validators on May 12.
The purchase and staking gave LFG a majority in the governance vote to ensure any proposal they supported would pass. So it is unclear whether LFG used these votes or delegated the votes to the validators themselves.
Well, as for now it’s clear that the new LUNA isn’t making the situation better. The crash of LUNA 2.0 is the worst scenario one could ever imagine.
Sources: Coinmarketcap, Reddit