What is Luna 2.0?
Luna 2.0 is a new version of the Luna token, the new cryptocurrency of the Terra blockchain. It came into existence in May 2022 after Luna and TerraUSD (an algorithmic Stablecoin) crashed.
When Terra’s tokens crashed, there were suggestions from investors in either of them about how to move on.
Many suggested a mass burning, but Do Kwon, the CEO and founder of the network, was against it, stating it would not benefit investors. He instead suggested a hard fork of the Terra blockchain, which received mixed responses from the community.
Despite much criticism, Kwon went ahead with the hard fork move. The hard fork resulted in two blockchains and cryptocurrencies.
The new blockchain and cryptocurrency became known as Terra 2.0 and Luna 2.0, respectively, while the old blockchain and cryptocurrency, which still exist, were renamed Terra Classic and Luna Classic (LUNC).
The new Terra token came into existence to compensate investors who had suffered heavy financial losses after TerraUSD crashed. The token was also a way for the platform to try and recover from the devastating market crash.
The new tokens were issued to those who held their old versions through airdrops. The token’s distribution plan included giving 35% of them to those who held its old version before the crash. TerraUSD holders received 10%.
Investors received the tokens based on how much of either the TerraUSD or old tokens they held before the crash.
How is it different
Luna 2.0 was created without the vulnerability of its old version. It is designed to operate without depending on any stablecoin for value. The old version-maintained value through its relationship with the TerraUSD algorithmic stablecoin.
On 28 May, when the token first hit the market, it was worth $4.94, according to Coinmarketcap. It would quickly appreciate, ending the month worth $10. Things would, however, take a huge turn for the coins going forward. They would slowly depreciate and start trading at $2 on 10 June.
The coin traded between $2 and $1 for most of the months to the time of writing. It is currently worth $2.68. It is ranked the 99th largest cryptocurrency globally, with a live market cap of $336,746,754.
There are currently 127,475,474 of them in public circulation. They are listed in several crypto exchanges, including Binance, KuCoin, OKX, and Bittrue.
In comparison, LUNC tokens, as of writing, are worth $0.0002662 each. They are ranked the 33rd largest cryptocurrencies in the world, with a live market cap of $1,637,683,104.
It is worth noting that not many people are confident about the new Terra coins. Many were quick to sell theirs as soon as they were airdropped. While it is early for speculation, the coin is not performing well. There are, however, a few who are hopeful about its future.
Author: Jay Jackson
Jay Jackson is a crypto trader, researcher and freelance writer. He works closely with people and businesses in the crypto sphere, writing blog posts, guides, press releases, reviews and ebooks.