Terra has been reborn as 2.0 after the successful approval of Terra’s recovery plan, put forward by Do Kwon, the founder of Terraform Labs. After a promising start, the new token of Terra is now down 70%.

Terra 2.0 Airdrop and Launch

Do Kwon, a Do Kwon spokesperson, announced Terra 2.0’s launch on May 28, 2022 at 06:00 UTC. Terra 2.0 is now in operation. Terra Classic USD (UST) and Terra Classic Terra (LUNA) have both been renamed.

Users were airdropped with 70% of the LUNA2.0 token after the launch. The Terra Classic chain held the Terra Classic tokens. This determined the amount of tokens users received.

Terra 2.0 Plunges By 70%

Terra 2.0 was launched at a $0.5 initial listing price. CoinMarketCap reports that Terra 2.0’s initial listing price was $0.5.

LUNA started to plummet in the following hours as investors dumping the currency. LUNA saw its value drop by more than 70% after the sale.

Terra 2.0 (LUNA) price chart for the 72 hour period. Source: CoinMarketCap

The price of LUNA plunged from $19.54 down to $3.63 by May 28. Terra has begun to recover after the sell-off. The altcoin is now trading at $6.01 and 75% above its launch date.

Terra 2.0 (LUNA) price chart for 24 hours Source: CoinMarketCap

Flipside

• Experts are concerned about Terra 2.0’s sustainability due to the lack of USTC, as the Terra ecosystem was built on an algorithmic stablecoin.

Why you should care

Investors in Terra originally sought to recover some of their losses by using the newly airdropped token to offset the LUNA’s plummeting value.

Read: To find out more about Terra 2.0 launch, click here

Terra Announces Rebirth Date and Gets Support From Major Exchange

The following article provides more details about Terra’s challenges:

Binance CEO Calls Terra Luna & UST Mechanism “Stupid”

Wall Street Investor Compares the Terra Case to a “Pyramid Scam”

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