‪Terra’s LUNA 2.0 Strives For Much-Needed Massive Rebound Amid Intense Bearish Sentiments

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Popular Ether proponents have taken to Twitter to note the immense drop in the price of LUNA 2.0 since its debut. Terra’s Do Kwon has also been tagged on tweets that seemed to take a mocking tone.

After launching on May 28 at a trading price of $19.54, LUNA 2.0 plunged by over 70% within hours to hit $3.9. Terra has since rallied and currently trades at $7.13, up over 17% on the day based on data by CoinMarketCap.

Terra’s Founder Criticized Over LUNA’s Descent

“LUNA2 dropped 66% in 5 days. Time for LUNA3? Stablekwon you up?” – Ethereum educator @sassal0x wrote in his tweet. 

In response to the tweet, angel investor and crypto proponent Ari Paul attempted to douse the flame of the initial poster before it even started by explaining how ETH2 was born after the famous 2016 DAO hack.

As explained by Gemini, “The DAO was a decentralized autonomous organization (DAO) that was launched in 2016 on the Ethereum blockchain. After raising $150 million USD worth of ether (ETH) through a token sale, The DAO was hacked due to vulnerabilities in its code base. The Ethereum blockchain was eventually hard forked to restore the stolen funds, but not all parties agreed with this decision, which resulted in the network splitting into two distinct blockchains: Ethereum and Ethereum Classic.”

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He also tried to portray the volatility in the crypto space while advising that those who live in glass houses shouldn’t throw stones.

However, other users refuse to see the similarities between ETH and LUNA2. While some express their shock that ETH and LUNA2 are paired in the same context, considering how the circumstances surrounding both crashes are worlds apart, others are straight on calling LUNA a Ponzi scheme;

Sassal responded to the comments, saying:

“I don’t think any of those things are comparable to what happened with Terra and I’m going to keep dunking on it because Do Kwon belongs in prison and anyone buying into “Terra 2.0″ is quite literally a lunatic.”

It is worthy to note that LUNA2 is a sequel token launched just after the phenomenal crash of the original LUNA that led to the loss of billions and numerous lawsuits filed against the founder, Do Kwon.

Luna 2.0 still has a long way to go

Prior to the decline in value, Terra’s one-time proponents rushed to dump their new LUNA Tokens. To revive the project after the flagship stablecoin, UST collapsed, Do Kwon, drafted a proposal that approved nearly 67% of outstanding tokens from the original Terra network to be traded under the new name Luna Classic (LUNC).

The proposal was approved by the majority of Terra’s token holders. However, many of the holders have taken to social media to inform that they’ve dumped their tokens as they barely believe in the value proposition of the new token.

The exchanges that supported the listing of the new LUNA token include Binance, KuCoin, Huobi, and Kraken. They helped distribute the newly minted tokens to the holders of Luna Classic following the parameters established on the now-passed fork proposal.