LUNA 2.0 Debut Experiences Hiccups as Price Plummets, Will Trust Remain Robust?
LUNA 2.0 has been on a rocky start based on a sharp price decline after Terra 2.0 successfully went live on May 28.
The price hit highs of $18.87 but later nosedived to lows of $5, according to CoinGecko. In the first 30 minutes of trading, LUNA 2.0 shot up to $30 from $0.30 on crypto exchange ByBit, but this peak was short-lived because it nosedived to $5.30 in a span of three hours.
With a total supply of 1 billion coins, the price was hovering around $6.28 during intraday trading, according to CoinGecko.
Terra 2.0 came to the limelight as a revival plan of the troubled Terra ecosystem after its native tokens LUNA and UST crashed.
Mid-last week, the Terra community passed the Terra 2.0 proposal because it was deemed the genesis of a new blockchain that could see the continuation of the ecosystem despite the drawdowns experienced.
How will trust play out?
With various crypto exchanges like Kraken, KuCoin, Nexo, Bitrue, ByBit, and Bitfinex already listing the LUNA 2.0 token, it remains to be seen how trust plays out in the network despite a rocky start.
Market analyst under the pseudonym Tajo Crypto explained:
“The people who have actually made money from LUNA 2.0 are those that received airdrops and sold. But I won't call it gains because the majority of the supply is still vested. Then lots of exchanges have made lots of money from trading fees. LUNA 2.0 will be profitable if it succeeds.”
Therefore, Tajo Crypto noted that the selling pressure experienced in LUNA 2.0 was driven by the urge of some investors to recover losses made when the ecosystem crashed.
With the old chain renamed Terra Classic (LUNC) and the new one Terra (LUNA), Tajo Crypto believes a wait-and-see approach is playing out. The analyst added:
“Some people are holding the Luna Airdrop hoping that Terra 2.0 will go to the moon. While some people had to sell to recover some of their losses from Luna classic. There are also those not sure of what to do yet. Whatever you decide, you might be right. No one knows tomorrow.”
Therefore, time will tell how the Terra network progresses, given that the proposal to burn 1.3 billion UST tokens was recently approved.
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Plan to Reboot Terra Ecosystem as Terra 2.0 Wins Approval