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The collapse of Terra has left the investors devastated. The Crypto market too suffered its havoc. Flagship currencies such as Bitcoin and Ethereum experienced a steep decline in their prices.
However, Do Kwon, the founder of Terraform Labs, devised a new plan “Terra Ecosystem Restoration Plan” earlier this month. It involves airdropping the new tokens of the Luna Tokens, leading to the development of a new blockchain.
On-chain voters approved the proposal to relaunch the Terra blockchain and create the LUNA 2.0 token. 65.5% of the community supported the plan while 13.2% voted against it.
As per the plan, the original blockchain will split off. The old chain will be called “Terra classic” while Luna, which dropped to zero this month, will be known as Luna Classic. Under the existing Luna name and ticker, the new Terra blockchain will begin running a coin. One thing with noting is that it will also not include the UST stable coin. In aN airdrop on Thursday, the new Luna will be distributed among previous holders of Luna and UST.
Crypto exchanges have already started announcing plans to list the token while using the industry parlance of “to the moon,” advocates are forecasting that it will surge.
Another exchange, Huobi, also verified the news and intends to list the new token.
The world’s biggest crypto exchange, Binance, says it’s working in collaboration with Terra developers for launching the new token.
The collapse of Terra resulted in the loss of billions, with the prices of UST and Luna both touching zero at one point. However, on Wednesday, the price of Luna rose by 18 percent, however, it continues to remain below a fraction of a cent, as per the data from Bloomberg. In April, it traded at more than $100.
Now, only the future will tell if the prices of the new Luna token will rise or not. However, the new blockchain would be needing support from leading exchanges in addition to keeping existing projects on the Terra blockchain. With the listing of the new Luna token on major exchanges, it would offer more liquidity for the token, and that can result in its value appreciation.
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With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
