LUNA 2.0 is Here, Crashes by Over 60% on First Day

A few weeks after the total and almost unprecedented collapse of LUNA, Terra has launched a new version named LUNA 2.0 

Indications that there would be a new LUNA version first emerged on the 16th of May when the company’s Chief Executive, Do Kwon, released a revival plan. 

This plan has since been modified to serve as the framework for LUNA 2.0 

According to the revival plan, the new version will be forked out of the old chain into a new one. The difference between the two chains would have been the UST stablecoin component. 

LUNA 2.0 Will Start From Genesis Block 0

However, an announcement by Terraform Labs, ahead of the launch, indicated that the LUNA 2.0 would share no history with the first version. 

According to the statement, the new version will be based on a genesis blockchain starting from block 0 with no dApps on launch

The decision to go ahead with the new version of LUNA was officially reached on May 25 after the conclusion of a voting exercise by members of the community. 

During the exercise, most voters gave overwhelming support to the launch of LUNA to pass Proposition 1623, thereby marking the arrival of the new version. 

Initially, the launch was scheduled to be on Friday, May 27 but was postponed till Saturday, May 28. 

Around 06:00 GMT on Saturday, LUNA 2.0 finally went live after its airdrop commenced. 

LUNA 2.0 Value Crashes by Over 60% at Launch

All eyes will be on how the new tokens perform as around 30% of airdropped tokens will be free to trade from day one. As of press time, the coin’s value has touched as high as $18 before crashing by over 60% to the current $5, according to data on Coingecko. 

Meanwhile, the reaction to the arrival of the new blockchain has not been entirely welcomed by some stakeholders in the crypto industry.

For example, Dogecoin co-founder Billy Markus described investors who buy into the idea as “truly dumb.”