Terra 2.0 kicks off to a rocky start

Temitope Akintade
The launch is an attempt to salvage what remains of the Terra community

The much-awaited ‘Terra Rebirth’ in the wake of the stunning collapse of the Terra ecosystem earlier this month has started on a difficult path. 

The launch is an attempt to salvage what remains of the Terra community. Still, the LUNA 2.0 cryptocurrency, launched on Saturday, suffered a significant price correction hours after its launch.

At the time the token was launched, Terra wrote, “Today marks the beginning of the next chapter for the Terra community; one in which our potential knows no bounds and our collective creativity can flourish.”

However, it is now looking like the happiness and optimism will be short-lived. According to data from Coinmarketcap, the token value is now down 68% from its launch price of $17.8. Its current trading price is $6.09 after soaring as high as $19.5.

The whole crypto market was waiting for the launch of Luna 2.0, but Do Kwon’s attempt to revive the network ended up as another catastrophe, causing another round of controversy. 

Terra Luna 2.0
Source: TheNewsCrypto

The market performance of the newly-launched token drew some reactions on Twitter. A tweep – @TajoCrypto is of the opinion that people are selling their holdings because they are trying to recoup some of the losses they made in the earlier crash of the ecosystem.

“The people that have actually made money from Luna 2.0 are those that received airdrops and sold. But I won’t call it gains because majority of the supply is still vested. Then lots of exchanges has made lots of money from trading fees. Luna 2.0 will be profitable if it succeeds.”

Ben McKenzie, an American actor and crypto-critic voiced his concerns about Terra 2.0 on Twitter, claiming that it will cause more suffering. He also criticised major exchanges for supporting the listing of the new Luna token.

Dogecoin co-founder, Billy Markus, previously tweeted that those who chose to invest in Luna 2.0, will “show the world just how truly dumb crypto gamblers really are.”

Felix Hartmann, managing partner of Hartmann Capital, told CNBC:

There’s a big question mark. Whether that will be successful will take a lot of rebuilding trust with investors and builders. So it’s something worth watching. But perhaps the real fruition—if it ever happens—would be over a year or two, certainly not this month.

BitGo CEO – Mike Belshe also questioned if Terra 2.0 will be able to outperform the project’s first version.

Do Kwon, CEO of Terra Labs already said that Luna 2.0 will be bigger than LUNA classic, which was once valued at more than $40 million.

The founder of the platform is now the main focus of the plunge in price of LUNA 2.0, with a section of the crypto community blaming him for the downturn. Most traders who lost funds to the previous mishap are still very loud across social platforms. 

Do Kwon, co-founder & CEO of Terra. Source: Coingape

While some have been calling for an investigation into the firm, others have called for his outright arrest and prosecution. Besides the Terra controversy, Kwon also faces accusations of fraud over the Mirror Protocol.

Asides from tweets and retweets of several key announcements, he has not given much of a statement across his social media in the last 48 hours. 

Regardless, the new blockchain launch is an audacious move from Do Kwon and his team. It is now on the cards whether the Terra ecosystem will be revived or it’s headed for the deep pit of hell. 

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