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The luna cryptocurrency is resurrected after its $40 billion collapse

The luna cryptocurrency is resurrected after its $40 billion collapse

June 01, 2022: -A new version of the collapsed luna cryptocurrency is already live on significant exchanges, and it’s gotten off to a bad start.

Last week, the Terra blockchain project supporters voted to revive luna but not terraced, a so-called “stablecoin” that plunged below its intended peg to the dollar, which caused panic in the crypto market.

TerraUSD, or UST, is what’s known as an algorithmic stable coin. It relied on code and a sister token, luna, carrying a $1 value. But as digital currency prices decreased, investors fled the stablecoin, sending UST tumbling and taking luna down.

At its height, the old luna, currently known as the “luna classic,” had a circulating supply of more than $40 billion.

Now, luna has a recent iteration, which investors call Terra 2.0. It is already trading on exchanges including By bit, Kucoin, and Huobi. Binance, the biggest crypto exchange globally, says it will list luna on Tuesday.

On Sunday, after getting a peak of $19.53, luna dropped as low as $4.39 just hours later, according to CoinMarketCap data. It has since settled at a price of around $5.90.

Analysts are skeptical regarding Terra’s revived blockchain being a success. It will have to compete with a host of others known as “Layer 1” networks, the infrastructure that underpins cryptocurrencies such as ethereum, Solana, and Cardano.

Terra distributes luna tokens through what’s called an “airdrop.” Most will go to those helding luna classic and UST before their collapse to compensate investors.

But all the investors burned by the debacle are not likely to trust Terra a second time, experts say. Vijay Ayyar, head of international at crypto exchange Luno, said there’d been a “tremendous loss in confidence” in the project.

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