The Release of Terra 2.0 with Airdrops of Tokens was announced
After the collapse of the Terra ecosystem earlier this month, few believed that Du Kwon, the founder of the project, could come up with a potential new project.
But it seems he’s hell-bent on at least leaving us in doubt. Terra’s two crypts, LUNA AND UST practically lost all their value when a failure in their programming caused a global price drop. Luna went from $100 to cents and UST went from $1 to tenths.
These crypts will now be called Luna Classic and UST Classic, while others with the first names will be the new monetary representations of what is now known as Terra 2.0.
Return of Luna / Terra
The thing is that the project returns to the load with a similar proposal but having learned from what happened. Recall that the original failure was due to a large price drop of bitcoin and that this was the underlying asset that supported the value of Luna and UST.
This will continue to happen, but developers will now be more involved in any price swings bitcoin may experience, so they won’t allow their own algorithm to crash their cryptocurrencies again.
The attempt to come back and indeed achieve it (for the moment) is perhaps the most difficult winning comeback attempt in the history of the crypto world. Trust is everything in this environment, and although many people have lost thousands or millions of dollars in the previous crash, it seems their developers still have some faith to spend.
Learn more about the Bitcoin’s price drop.
The official comeback took place on May 28; 21 days after the disaster began, making it very quick to return. Only 3 weeks to re-list an asset in exchanges and with the same name, is something to admire, indeed.
To celebrate the launch of the new Terra 2.0 the airdrop that started this new project without a roof and without a floor has begun. And it is a mystery what will happen with Luna and UST from now on.
For now, we can say that 70% of the new token assignment will be sent to the old holders of LUNA, UST and aUST (staking UST in Anchor Protocol).
This means that users who had LUNAs, USTs and aUSTs before their value falls (before May 7) will be rewarded with more tokens. And less will be given to those who got tokens in the next days. The numbers are as follows:
The LUNA holders prior to the attack will get an airdrop very close to 1:1, that is to say they will receive the same amount of tokens that they had before, only that they are no longer worth cents. On the other hand, those who bought tokens after the crash will only get 1:0.000015. Therefore, you will need more than 1000 Luna Classic to get 1 new Luna.
Instead, UST holders get an even worse deal. Those who have it before the crisis will get 1:0.033 and those who buy it after the crisis will obtain 1:0.013.
So this is how the reorganization of the Terra project begins. While Luna is already trading at $8 (it reached $25 on its first day), it is not possible to exchange UST yet. Certainly, everything seems still far from how it was before the crash, but we are at a fresh start that very few people bet on.
Whether it really takes off or not remains to be seen. The cryptocurrency may currently be worth just $8 little compared to the $100 it was worth a month ago, but Luna now has the potential to eventually make a strong comeback. We just have to wait and see if this potential is tapped or not.