LUNA 2.0 Launches With Rocky Start, Casts Doubts Following Price Crash

This week’s launch of Terraform Labs’ Luna 2.0 was off to a rocky start after its native token crashed nearly 70% within the last 24 hours.

The new Luna is currently airdropping to existing owners of the old Luna coin (dubbed ‘Luna Classic’) and to the owners of TerraUSD (dubbed ‘Terra Classic’). Data from Coingecko revealed the coin reached as high as $18.87, before plunging to less than $5 within that same reporting period. Despite its poor performance, its reputation across social media remains strong.

Over the last 24 hours, there have been over 110,000 mentions of Terra 2.0, and over 8,600 posts about Luna 2.0 per hour, according to LunarCrush.

Several crypto exchanges like ByBit, KuCoin, Bitrue, Huobi, and Binance have already expressed their support for the new token despite the controversies surrounding it. Binance has also shared that it will open trading for the native token in its innovation zone, and will begin trading by this month’s end.

Will trust in Luna 2.0 remain strong?

The price-performance of the new token has drawn different reactions on Twitter with many dating the decline shows that there is “low trust” in the system.

According to @TajoCrypto, people are selling their holdings because they are trying to recoup some of the losses they made in the earlier crash of the ecosystem.

Some also poked fun at the investors saying there would be a third version of the blockchain soon.

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

An earlier report tied the fall of Terra’s ecosystem to multiple entities, naming DeFi lender Celsius Network as one of the institutions to blame.

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Oluwapelumi Adejumo

Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.

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