Reasons Why Terra 2.0 LUNA Could Be Successful !

Terra blockchain has been affected since the market decline of some of its tokens like the original Terra and Terra 2.0 which is now called Terra Luna Classic (LUNC), TerraUSD (UST) which is now called TerraClassicUSD (USTC), and Anchor Protocol (ANC).

TerraClassicUSD (USTC) is presently trading at $0.035 with a 24 hours increase of 21.2% while Terra Luna Classic (LUNC) is traded at $0.000117 within 24 hours decline of 26%. With the launch of Terra 2.0 which is the present LUNA in the market, there are diverse sentiments on its future.

Some of the reasons why Luna 2.0 (LUNA) will succeed irrespective of the past history of Terra Luna Classic (LUNC) are:

• Correction of the congestion challenge.
• TerraLunaClassic (LUNC) past history.
• The rebranding.
• The investigation that the implosion was not an attack.
• Terra 2.0 (LUNA) recent run.
• Top cryptocurrency exchange listing of LUNA.
• Investors sentiments.

Correction of the congestion challenge

One of the reasons why the market implosion of Terra Luna Classic (LUNC), TerraClassicUSD (USTC), Anchor Protocol (ANC), and Mirror Protocol (MIR) was heavy was that top cryptocurrency exchanges that had them listed, suspended withdrawal and deposits on them. This was due to the fact that transactions are no longer completed as at when due which gave rise to congestion. However, the Terra team led by Do Kwon worked tirelessly to ensure that the challenge is solved. The team had a breakthrough which saw the exchanges that had previously suspended withdrawal and deposit activities lifting it. This shows that the Terra team that handles the present Terra Luna 2.0 (LUNA) is committed to face possible challenges that might arise and also bringing solutions to them.

TerraLunaClassic (LUNC) past history

Prior to the market implosion in the price of Terra Luna Classic (LUNC), it attained an all-time high price of $119.18 on April 5th, 2022 according to CoinGecko. LUNC became very competitive and in high demand which saw it in the eighth position in the CoinMarketCap ranking. By April 21st, the market capitalization of LUNC before the implosion as a result of the loss of the dollar peg of its stablecoin TerraClassicUSD (USTC) was $22 billion. Terra 2.0 (LUNA) might repeat the same history soon.

Rebranding

The effect of the market implosion in the price of TerraClassicUSD (USTC) led to team to consider various options on how to get the Terra blockchain fixed, with investors and traders in mind. This led to a rebranding of the original Terra (LUNA) to Terra Luna Classic (USTC) and TerraUSD to TerraClassicUSD (USTC). An airdrop of a new Terra called Terra 2.0 which is now the present LUNA in the market was made to holders of Terra Luna Classic (LUNC) and USTC before the implosion and after the implosion. The airdrop is determined by the date. This was completed on May 28th, in support of various cryptocurrency exchanges. Investors were able to receive an airdrop of Terra 2.0 (LUNA) which is trading at $9.73 at the time of writing. This will reduce the impact of the huge losses they had. In the same way, the Terra team is working hard to ensure that the same mistake does not happen with rebranded Luna 2.0.

The investigation that the implosion was not an attack

No investor wants to invest in a project that is prone to attacks or hacks. Rarely had there been a market implosion of a top token, with huge impact on investors and the market like the Terra implosion. This led to various statements in some quarters that this could be an attack.

The result of the research conducted by analytic firm Nansen refute the claim in some quarters that an attacker is working to destabilize UST. The analytic firm in their report noted that:

“The de-peg of UST could instead have resulted from the investment decisions of several well-funded entities to abide by the risk management constraints, or alternatively to reduce UST allocations deposited into anchor in the context of turbulent macroeconomic and market conditions.”

This now shows that the present Terra 2.0 Chain is safe for investors and developers.

Terra 2.0 (LUNA) recent run

After the airdrop of Terra 2.0 (LUNA) to Terra Luna Classic (LUNC) and TerraClassicUSD (USTC) holders, the price of LUNA 2.0 attained a present all-time high price of $19.54 on May 28th, before plummeting to the present all-time low price of $3.63 same day. This made some investors to be sceptical of the future of rebranded LUNA. However, it has increased by over 180% in the past 3 days, after attaining 43.63 according to CoinMarketCap.

Additional listing of Terra 2.0 by cryptocurrency exchanges

Some cryptocurrency exchanges did not have their intention to support this upgrade. However, LUNA 2.0 (LUNA) had received support from top cryptocurrency exchanges like Binance, FTX, Huobi Global, LBank, Mexc, ByBit, and others. In price of LUNA increased by over 80% within 24 hours in preparation for the Binance listing. We should expect a continuous rise in the price of Luna 2.0 as more exchanges get it listed on their platform.

Investors’ and developers’ sentiments

Some blockchains like Binance and Polygon have signified interest to support the migration of Terra projects to their platforms by providing huge funds in millions. However, some Terra investors and developers of decentralized applications (Dapps) had not been quick to accept the offer. This shows their belief that the present Terra 2.0 Chain will provide solutions to the previous challenges with the Terra blockchain that led to the congestion.

In conclusion, since the crypto market is just a few years over a decade and is associated with challenges, those who never give up are always winners after a price surge.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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