The relaunching of Terra’s new Luna token has had a lethargic start, failing to inspire the investors who acquired the new tokens after the collapse of the cryptocurrencies associated with the failed Terra blockchain last month.
The original Terra chain was rebranded as Terra classic and Terra as Terra 2.0 since the developers of the failed stablecoin TerraUSD were in favor of abandoning the token to create a new blockchain and digital asset weeks after the collapse of the cryptocurrency.
The initial blockchain has been rechristened Terra Classic, while Luna, which plummeted close to zero last month, has been rechristened Luna Classic with the ticker LUNC. Stablecoin is not included in the new Terra blockchain.
As per the data compiled by tracker Kaiko, Luna 2.0 token’s average price has stayed below $11 in the last week since they were circulated by Terra.
While there is no widely accepted data point to calculate Luna 2.0’s market value, the data tracker CoinMarketCap estimates the total value at around $1.37 billion.
As per Bloomberg, there are 210 million latest Luna tokens in circulation, based on the amounts declared by the Terra project’s administrators.
The airdrop was extremely poorly organized. It rewarded equity holders – LUNA holders – above savers or bondholders, anchor depositors, or UST holders. Thomas Dunleavy, a senior analyst at crypto research firm Messari notified Bloomberg that any cryptocurrency network is built on trust, not only by users but also by builders who invest their time and money to develop the network.
On May 6, Luna’s market value was about $27.8 billion before it collapsed. UST was created to keep its dollar peg by utilizing both algorithms and trading incentives involving Luna.
Unlike most other important stablecoins which have a backing of other assets, TerraUSD’s value is determined by complex algorithmic processes and is linked to another paired token known as Luna.
