Bad Start: LUNA 2.0 Dumps 75% After Re-Launch

Written by C, Fiona

Last updated: 2022-05-31

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The re-launched LUNA token after the hard fork did not get off to the best start and dumped 75% in the first 48 hours immediately after the launch.

There’s never a dull day in LUNA land, and that probably won’t change after its launch over the weekend.

Following the hard fork of the old Terra chain — now labeled Terra Classic — into Terra, its LUNA coin re-launched. That Luna V1 and V2 setup is reminiscent of Ethereum and Ethereum Classic, where (almost) everyone knows “the real thing.”

The launch of Terra V2 did not really go according to plan though, and the coin dumped hard after an initial spike to $19.54 briefly after the launch. It bottomed at $3.63 only hours after its launch and trades at $5.90 at the time of writing. That was despite (or maybe because of) the fact that LUNA was listed by several major exchanges like KuCoin, Bybit, FTX, and others.

700 million of the total one billion LUNA coins are going to stakeholders of Luna Classic, either those that held LUNC or those that held its (now almost worthless) TerraClassicUSD stablecoin. The V2 version of Terra does away with the stablecoin and wants to preserve the ecosystem, although the viability of that plan can be called into question, considering how DeFi-oriented the Terra ecosystem is.

LUNA Fails to Rebuild Lost Trust in the Market

Only 30% of the initial supply can be claimed after the airdrop, and it seems claimers aren’t exactly holding on for dear life to their LUNA.

Lark Davis told his almost one million followers that he isn’t planning to HODL his LUNA bag if he gets one:

“Zero plans to buy $luna 2.0, but I will dump any airdrop if I get something on Binance.”

Even Bitboy Ben Armstrong, never one to shy away from shilling a dubious crypto investment, recommends against that:

“Crypto Expert Tip: Don’t buy LUNA ever again. Not 2.0, not 3.0, not 3.14. Something you just have to accept your loss. The experiment failed. Move on.”

Terra V2 will have a difficult task to rebuild trust as the catastrophic failure of UST has destroyed much of its credibility. It won’t get any easier in a bear market where capital is scarce and investors are asking more questions than they did during the bull market. But if anyone is willing to take on the seemingly impossible, it’s certainly Do Kwon.