New Terra Doesn’t Bring Huge Profit For Holders After Launch: Details


The expectations for the new are already falling short Terra blockchain, which went live about a week ago. Terra 2.0 was launched on May 28 as part of the “Terra revival” plan in a community-approved proposal from Terra co-founder Do Kwon. The original Terra blockchain was abandoned after the collapse and renamed Terra Classic. The new Terra blockchain, which does not support stablecoins, already has seven projects launched on it.

LUNA 2.0 got off to a shaky start as reported, losing nearly 70% within 24 hours of launch.

Since then, the average price of the LUNA 2.0 token has remained below $11. At the time of publication, LUNA changed hands for $4.72, a drop of 26% in the past 24 hours, per CoinMarketCap data. On May 6, the old LUNA traded around $86 before the TerraUSD (UST) stable coin lost its dollar parity.

Here’s what the market thinks about Terra 2.0

As previously reported, while Terra seemed quite hopeful about the success of this new chain, few are so optimistic.

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“There is a big question mark. Whether that will work will require a lot of confidence from investors and builders,” says Felix Hartmann, managing partner of Hartmann Capital, in response to the newly launched terra blockchain.

According to Hartmann, it’s worth watching Terra’s rebuilding from the ashes as it will likely start from the bottom up, but it will also take a lot out of the founders as they will no longer have multi-billion dollar market valuations. “So it’s worth watching,” Hartman continues, “but the real result — if it ever happens — could take a year or two, certainly not this month.”

Terra’s ecosystem collapsed in May following the depegging of Terra UST. After a sharp price drop, the original LUNA completely lost its value, with billions of losses recorded. Changpeng Zhao, CEO of Binance, has revealed that the company has lost nearly $1.6 billion of its LUNA investment at the top.

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