• CoinMarketCap reports that LUNA now trades at $3.50, after a 19.74% price drop over 24 hours.
• Because of the speculations surrounding Do Kwon, trust in this new ecosystem remains low.
• One of these speculations revolve around the issue of the new network being “community-owned.”

Terra’s LUNA 2.0 has crashed by almost 20% over the last day. CoinMarketCap reports that LUNA now trades at $3.50, after a 19.74% price drop over 24 hours and after hitting a peak of $4.62 during the same period. LUNA’s price also dropped by 50.81% in the past week.

LUNA’s market cap is currently estimated to be around $731,780,901. The cryptocurrency also saw a 24 hour trading volume of $362 645,111. This is 15.78% higher than yesterday.

There have been different explanations regarding LUNA’s almost 20% drop, but many people believe it has to do with the fact that trust in the new ecosystem is still very low and because of speculations that emerged about Do Kwon.

One of these speculations revolve around the issue of the new network being “community-owned.”

A self-proclaimed Terra-insider called “FatMan” shared in a tweet on June 6 that “Do Kwon has stated numerous times that TFL has zero new LUNA tokens, making 2 ‘community-owned’. It is a complete lie, and nobody seems to care about it. In fact, TFL owns 42M LUNA, worth over $200m, and they’re lying through their teeth.”

Kwon may have been involved in the relaunch, and used his LUNA holdings for voting in favor of the hardfork.

These speculations do not help the trust already low in Terra’s new ecosystem. Although these speculations are not confirmed, they appear to have created enough uncertainty for a large sell-off.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. The information contained in this article shouldn’t be taken as advice. CoinQuora urges users to conduct their own research prior to investing in cryptocurrency.

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