Price (USD)$ 1.63
Circulating SupplyLUNA 167.85652M
Volume (24h)$ 23.21121M
Market Cap$ 268.96733M
Low/High 24h$ 1.58 - $ 1.64
Change (24h)$ 0.031579
Nearly every crypto enthusiast heard about the Terra (LUNA) crash in May. It shook the entire crypto market to its core, leaving many accounts nearly empty. The initial Terra was an open-source blockchain payment platform for an algorithmic stablecoin, which are cryptocurrencies that automatically track the price of currencies or other assets. UST was designed to maintain its dollar peg through both algorithms and trading incentives involving Luna. Terraform Labs, which oversees the Terra cryptocurrency project, has benefited from its rising popularity, but in the last month, huge withdrawals of TerraUSD, along with overall worries about cryptocurrencies and a steady fall in prices, saw Terra lose its peg to the dollar. Luna had a market value of about $27.8 billion on May 6, before it crashed.
However, the network’s co-founder, Do Kwon, decided that a hard fork can help the project start anew with a different cryptocurrency. After the passing of a Terra Luna vote, Terra launched a new chain that it hopes will rescue the ecosystem. This project is now called Terra 2.0 (Luna). The new Terra blockchain does not include a stablecoin. The old token is referred to as Terra Classic (LUNC). Luna Classic also carries over the existing Luna circulating supply of 6.5 trillion. Wrapped Luna will also continue to follow Luna Classic. The old chain - and old Luna - won't just disappear, the two will simply co-exist.
The South Korean firm Terraform Labs was initially founded in 2018 by Daniel Shin and Kwon, who is now the company’s CEO. It has raised $57 million in funding from investors like HashKey Digital Asset Group, Divergence Digital Currency Fund, and Huobi Capital. Since then, the Terra (LUNA) coin enjoyed a long way up and a quick downfall.
The rebranded Terra crypto has been a hot topic for discussion for several weeks, and the project has already attracted many crypto investors.
Luna 2.0 released on May 28 during the genesis block for the new Terra chain, when the first block on the new mainnet, known as Phoenix-1, was produced. The new coin started trading at $17.8, briefly spiking to $19.53 within the first hour of trading. Since then, however, Terra (LUNA) price has dropped, going down to $2.55 as of 13 June. LUNA price today is 1.63 USD.
Alongside the new chain, most of the dApps will also migrate to the new chain. Most other features will transfer over, according to Terra. ‘Terra 2.0 is bringing the same ideals you fell in love with the first time,’ the company’s tweet read. ‘World-class UI/UX, our amazing LUNAtic community, and a deep, talented developer pool poised to build the future of DeFi.’ More projects successfully migrate over to Luna 2.0, with Terra sharing several of these updates each day on Twitter.
Existing Terra (Luna) crypto holders were allocated Luna 2.0 via an airdrop at the new Terra chain's launch. With a supply of 1 billion, the airdrop allocations are as follows:
Not all the 1 billion Luna will be available at launch. A large majority of this will be vested until at least six months after the new chain releases. A reported 210 million coins are currently in circulation. Several cryptocurrency exchanges also supported the airdrop and subsequent transition to a new chain.
Securing LUNA 2.0’s future will be integral to sustaining the ecosystem as it is the lifeblood of the crypto project. The cryptocurrency is mainly used for verifying transactions through Terra’s proof of stake process. Those staking the token and participating in this process will be eligible for rewards from transaction fees.
While there is not a widely recognized data point to calculate a market value for Terra 2.0, a rough estimate by data tracker CoinMarketCap puts the total value at about $536,692,199. That is based on 210 million new Luna tokens in circulation, using amounts claimed by those who run the Terra project, as per Bloomberg.
So what will eventually become of Terra 2.0? Will it be able to repeat the success of its predecessor? Terra (Luna) price has been declining ever since its launch. It can also be attributed to the fact that the whole market is shrinking due to the ongoing crypto winter. LUNA 2.0 is hoping to rebuild investors’ trust with its reimagined blockchain and native cryptocurrency.
Some analysts believe Terra coin price will soar high. For instance, PricePrediction thinks that Terra 2.0 will cost as much as $12.03 at its peak in 2025.
CryptocurrencyPricePrediction believes that in 2025, the new coin will climb to $37.5136 and promises it will hit $105.6 in December 2030.
Generally, the majority of crypto analysts are bullish over the updated LUNA token. However, within its short history, LUNA 2.0 has already demonstrated volatility, so the risk of losing the investment remains.
Kwon Do-hyung, more commonly known as Do Kwon, is a South Korean cryptocurrency developer who co-founded and is CEO of Singapore-based Terraform Labs. The latest news is that he is wanted because of the collapse of his crypto project in May, when TerraUSD, also known as UST, crumbled from its dollar peg and brought down the ecosystem he had built. In July, prosecutors raided the home of Terraform Labs co-founder Daniel Shin as the probe into allegations of illegal activity behind the collapse of TerraUSD deepened. This, in turn, led to the investigation of Kwon Do and his activities.
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Don’t forget to do your own research before buying any crypto. The views and opinions expressed in this article are solely those of the author.