In line with the revival plan of Terra founder Do Kwon, the next generation of the Terra blockchain was launched on Friday.
Luna 2.0, a fork of the original Luna blockchain, will begin manufacturing its new Luna coin, beginning with support already made through its partners Bitfinex, Binance, ElBank, KuCoin, Bybit, FTX, OKEx and Bittrue . The new Luna is currently circulating to existing owners of old Luna coins (dubbed ‘Luna Classic’) and to owners of TeraUSD (dubbed ‘Terra Classic’).
The original Terra blockchain saw Tether (UST) fall below its US dollar value, with several crypto exchanges expressing their support for Do Kwon’s revival proposal. The new LUNA distribution builds on “pre-attack” and “post-attack” snapshots of the original Terra blockchain, which allocates new tokens to users who had stakes in the chain prior to the meltdown.
On Friday, Terraform Labs announced that it has captured a post-attack image of the blockchain, and is “assembling an origin file for launch.” At press time, LUNA is currently trading at $5.51, with the most active exchange being Gate.io.
The team at Terra revealed the production of the first transaction block of the chain in a tweet:
Phoenix Finance, the primary DEX on Terra 2.0, was launched simultaneously with Terra 2.0, paving the way for more dApps already running on Terra Classic to be relaunched on Terra 2.0.
Terra 2.0 still controversial
The response to the new Terra blockchain has been mixed. While some exchanges like Bitrue are bullish and have announced Expected start of produce farming, businesses like OKX make warning Users against risk.
“Please trade with caution, LUNA is still highly volatile.” Galois Capital, whose CEO Kevin Zhou has repeatedly warned about the fragility of the original Terra algorithmic arbitrage system, criticized the launch of TerraForm Labs.
“Hug me once; shame on you. Hug me twice; shame on me,” Co. tweeted, The company also said that inconsistent naming conventions for LUNC and LUNA would deceive trading bots, causing some holders to recoup.
Will The Biggest Loser Benefit?
It remains to be seen whether some of the users who have invested their life savings in Terra will benefit from the new blockchain and airdrop. Data from blockchain analytics company Nansen said that approximately 265,000 crypto wallet addresses had deposited funds into Anchor, a type of crypto bank operated by TerraForm Labs, which offers depositors a yield similar to an interest-bearing account.
Keith Baldwin, a 44-year-old surgeon from Massachusetts, had accumulated $177,000 in savings over the past ten years. Not being a crypto enthusiast, he entrusted the management of his savings to a startup called Stablegains. He reportedly bought USDCoin with his savings, depositing it into an account offering a 9 percent annual yield.
In April 2022, he transferred his USDC holdings to a Terra account, offering a 15% yield. Shortly thereafter, the price of UST and Luna fell, sending Baldwin’s savings down the slope. Stablegains is now slowing down its activities.
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