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May 30, 2022

New Terra (LUNA) Loses Nearly 80% of Its Value Hours After Founder Do Kwon Announces Airdrop

By Daily Hodl Staff

The new Terra 2.0 (LUNA) crypto asset dropped by nearly 80% immediately after founder Do Kwon announced its launch over the weekend.

The new altcoin was airdropped to holders of the old LUNA following its collapse in early May, after the Terra community voted for the genesis of a new blockchain.

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Launching near the $18 mark, LUNA went as low as $4.39, and has traded more or less sideways since then. At time of writing, the new LUNA coin is trading at $5.59.

Binance, the largest crypto exchange in the world by trading volume, announced it would be listing LUNA in its Innovation Zone, which it designates for tokens with increased volatility that pose a higher risk than other coins.

LUNA has also been listed on other big crypto exchanges, including KuCoin, Kraken and OKX.

In Do Kwon’s original proposal for a new blockchain, the entrepreneur said that the aftermath of the UST peg failure was a chance to rise up anew from the ashes.

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The new blockchain, called Phoenix-1, is now live with public node services. Wallets and explorers are expected to launch shortly, according to Kwon.

Terra 2.0’s launch comes on the heels of an investigation by Korean officials into charges that Kwon knowingly ran a Ponzi scheme.

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Featured Image: Shutterstock/solarseven