Do Kwon, CEO and co-founder of Terraform Labs’ grand revival plan to salvage the Terra ecosystem from its current stage has failed. On Saturday, Kwon launched Luna 2.0, the revamped version of the Luna coin. The company CEO believes that validating all invalid blocks as well as transactions on the blockchain network will make the coin boom once again. This plan will be done via something called—a hard fork.
A hard fork will ensure that Terra is not linked to the current Terra blockchain, instead will be linked to a new blockchain, then the Terra token can be switched to TerraClassic, the stablecoin by Terraform labs that are not algorithmically designed.
Unfortunately, Luna 2.0 is already tanking. After Luna 2.0 was launched, it hit a high of nearly $20. It is currently valued at around $6.27, a near 75 per cent drop. according to CoinMarket Cap.
It should be noted that Terra-Luna coins are sister coins and to maintain the balance between them, users had to buy some Terra and then exchange it instead of Luna, for which they would earn small profits. With both coins crashing, after the supply-demand ratio broke, the only way the CEO believes to revive the coins is through the introduction of a new coin.
According to a previous announcement from Terraform Labs, Terra 2.0 went live on May 28, 6 am UTC. The company also launched the airdrop of new Luna tokens that will be processed soon. A crypto airdrop is predominantly about raising awareness for new projects and services. The idea is to send new tokens to thousands of crypto wallet addresses with the hope that more and more recipients will engage and promote the corresponding project– even if it’s only to learn how to cash out the free tokens into something else.
This comes after global cryptocurrency exchanges such as Binance, FTX, Crypto.com, Huobi, Bitfinex, Bybit, Gate io, Bitrue and Kucoin announced support of the new Terra plan. Binance, the global cryptocurrency exchange stated that it was “working closely with the Terra team on the recovery plan,” while FTX announced that it would support the “new LUNA airdrop and suspend LUNA and UST markets.”
Interestingly, Binance CEO Chengpeng Zhao earlier criticised the hard-fork plan to revive the Terra blockchain ecosystem. He even went on to advise that “burning of Terra coins could help”. Burning essentially means sending a particular token to a dead wallet so that it can never be retrieved, in short reducing the supply of the coin, which eventually increases the demand.
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