The reintroduction of the latest Luna Terra token has faced a dull start and failed to impress the investors who received the new tokens over last month’s collapse of the cryptocurrencies tied to the failed Terra blockchain.
The Terra Chain has rebranded as Terra Classic. Terra is now known as Terra 2.0 as the team of developers has failed stablecoin TerraUSD voted to abandon the token in favour of creating a new blockchain and digital asset right after the collapsed week of cryptocurrency.
The original blockchain was diversified and is known as Terra Classic, while Luna, who was recorded as nill last month and was renamed Luna Classic with the ticker LUNC. The latest Terra blockchain does not consist of stablecoin.
Since the distribution made by Terra, the average price of the Luna 2.0 token has been below $11 in the last week, as per the data compilation of tracker Kaiko.
There is no wide data point to analyze a market value for Luna 2.0; a rough estimation is made by the data tracker CoinMarketCap and calculates the valuation of about $1.37 billion. As per Bloomberg, the numbers are based on 210 million new Luna tokens in circulation, claimed by those who run the Terra project.
Thomas Dunleavy, a senior analyst at crypto research firm Messari, told Bloomberg that the airdrops were poorly structured. It rewarded equity holders -LUNA holders, over savers or bondholders, Anchor depositors or UST holders. Any network in crypto stands on the trust pillars, not only users but also builders who have involved their time and capital to make the network grow.
On May 6, Luna had a market value of about $27.8 billion. UST was developed and designed to maintain its dollar peg through both algorithms and trading incentives involving Luna.
TerraUSD’s value was estimated by complex algorithmic processes and has been linked to another paired token called Luna.