Meanwhile, the reborn version of Terra (LUNA) has been up and running for a few weeks, but the launch of Terra 2.0 did not go completely smoothly. Two weeks after the LUNA airdrop of new tokens, the price of the new LUNA token is under water with no less than 77%. So we can’t really speak of a real revival.
Another Terra debacle
At the time of writing, LUNA is trading at a price of $3.49. That is more than 70% lower than the initial price of LUNA just after the airdrop, which was supported by, among others, the Dutch exchange bitvavo† While the state of the overall crypto market has of course played a role in LUNA’s demise, it can be argued that there is simply no more faith in the Terra project, least of all in the network’s founder, Do kwon.
The launch was anything but smooth, with projects frantically discussing which projects are entitled to this emergency funding. To make matters worse, leaked chat messages show that Terra founder Do Kwon is not averse to joking at the time of the collapse where billions of dollars of investors were lost. All these things mean that trust in Terra is at an all-time low.
Terra founder Do Kwon
Mainly speculation about possible lies from Do Kwon and Terraform Labs have been a major influence lately. User shared on Twitter FatManin their own words a Terra insiderrumors about the dealings of Do Kwon and Terraform Labs and the allegations of FatMan are not tender.
For example, it would have been stated several times by Do Kwon that the new Terra network would be completely in the hands of the community. Terraform Labs would not own any LUNA token. FatMan states that these are lies and that TerraForm Labs owns at least 42 million LUNA tokens with a market value of $200 million.
Do Kwon has stated numerous times that TFL has zero new LUNA tokens, making Terra 2 ‘community owned’. This is an outright lie that nobody seems to be talking about. In fact, TFL owns 42M LUNA, worth over $200m, and they’re lying through their teeth. (1/6) pic.twitter.com/D1HIWpAWHG
— FatMan (@FatManTerra) June 6, 2022
Although these are just rumors, and we cannot say for sure that it is not simply about FUD going, investors on a large scale have already taken the rush. This, of course, caused the price of the new LUNA, just like the old LUNA, to fall completely.