Terra blockchain’s historic crash was meant to last forever in the minds of every investor, but that’s just a theory. In the real sense, investors are over it already. Well, an airdrop is enough to heal it. At least you got a crumb of your old Luna holdings and you’ll get even more in the coming years, so we can call it even. Crypto space is unique for many things; price volatility, getting rich quick (and otherwise), and short-term memory.
If you dabbled into the old Luna, it still trades on some of the most popular exchanges, in fact, there are some good periodic pumps. With some nice trading fees being generated, exchanges are going to keep the infamous token on their platform for a while.
It’s no news anymore, Terra has moved away from the original and troubled Terra blockchain and its associated algorithmic stablecoin—UST. These old tokens have since been renamed…and abandoned. Holders of the old tokens received a certain percentage of the new Luna tokens relative to the amount held and time of purchase. Exchanges and the rest of the community have responded positively as the new Luna rallied at launch and currently trades on almost every reputable exchange. Do Kwon and the Terra community will hope to get it right this time. Luna classic community on the other hand will have to rely on token burns to revive their investments as developers move to the new chain.
The decision to create a new chain and token comes after many attempts to save the old chain and the stablecoin. Terra’s LFG foundation reportedly lost a majority of the project’s reserves in failed attempts to save the peg and the (now) old chain. Lawsuits have been served, and controversial stories have made the news, but that appears to be in the past now…
The phoenix rises…the new terra chain has been named Phoenix-1. Attempts to build a new chain away from the ruins have already started. Several spin-off projects will be hoping to deploy on the new chain. But how far can the new LUNA go?
The crypto market isn’t just a measure of quality, rather; it is a measure of human reaction, perception, and understanding. These can be highly influenced by marketing and quality. Sometimes, the former has more effects. The initial success of Luna, the unfortunate crash, and the events that have followed since then have given Luna a great deal of fame. Some positive, some otherwise; but in crypto, every fame can be positive. Without any tangible development on the new chain, Luna’s new token is currently trading at a few cents above 2$ (at the time of this writing) and already recorded an all-time high of $27. The project’s market capitalization sits at about $270 million. Many solid projects struggle to reach these figures, Luna already smashed them…thanks to some passive marketing.
The Luna was programmed to work in tandem with the UST stablecoin. The stablecoin was meant to be an integral part of the ecosystem. The new Luna is currently without a traditional stablecoin. Do Kwon’s initial proposal hints at running the blockchain without a stablecoin, rumors suggest otherwise. But if the new chain continues to exist without a traditional stable coin, Terra should struggle to reach its previous heights. If a stablecoin similar to the old UST is re-introduced, the old fear rises again…along with the phoenix. But the cryptocurrency market is irrational and a new stablecoin could bring resounding success to the new blockchain while we forget the old mishap.
Will Do Kwon learn from his mistakes? Well, it’s hard to say for certain how the Terra founder feels about that LUNA incident. The only thing for sure is, that he plans to make Luna 2.0 a success. The previous project was a huge success before the unfortunate. Regardless, the warnings were there and his attention was drawn to the possible loopholes in terra’s mode of operation. His reactions to these warnings were similar and negative. Several times, he failed to pay attention to these findings and continued with the unedited codes. Over 60 billion dollars in losses and a few turbulent weeks should be enough to teach anyone a lesson, but it’s hard to tell if he learned from them. The success of the new Luna will depend largely on how much he learned from the old one.
The internet has a very short memory, cryptocurrency investors share this character as well. If the Terra team can get it right this time, the market will surely levitate towards the new ecosystem, this could also be good news for the old chain as well. These few edgy weeks will be fast forgotten and Do Kwon can place another bet on the new Luna going below $80.
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