Luna2.0 CRASHES 132% on day of launch; what next?

Luna2.0, the beacon of hope for the Terraform Labs to revive the Terra ecosystem crashed 132 per cent on the day of its launch.

The cryptocurrency was trading at $19.53 at its peak and then crashed to $3.988 within hours of its launch, a steep 132.32 per cent crash, data from Coin Market cap showed.

What is Luna2.0?

Luna2.0 emerged from the previous version of Terra Luna after the TerraUSD de-pegging fiasco. After the stablecoin got de-pegged from its peg at $1, the volatile cryptocurrency of the Terra ecosystem also crashed and wiped out 100 per cent.

To revive the Terra ecosystem, Do Kwon, the founder of Terraform Labs, proposed a ‘Hard fork’ of the original network and suggested that the new network be home to the new cryptocurrency, Luna2.0.

Why did the crypto crash?

The crash of Luna2.0 can be attributed to the fact that around 30 per cent of airdropped tokens were free to trade on the day of the launch. This might have prompted many holders to exit from their positions because of less faith in the project.

Currently, the cryptocurrency is trading at $5.84, 18.48 per cent up in the last 24 hours, as per data from CoinMarketCap as of 9:15 am IST.

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