It is reported that the new version of the collapsed Luna cryptocurrency has been launched on major exchanges, and has had a bad start Last week, supporters of the terra blockchain project voted to restore Luna, but not terrausd. The latter is a so-called "stable currency", which fell below its expected exchange rate pegged to the US dollar, causing panic in the cryptocurrency market.
Terrausd, or ust for short, is an algorithm stable currency. It relies on the code and a sister token Luna to maintain the value of one dollar. However, as the price of digital currency fell, investors fled the stable currency one after another, leading to a sharp fall in ust and a fall in Luna.
In its heyday, the old version of Luna - now known as the "classic Luna" - had a circulation supply of more than $40billion.
Now, Luna is also upgraded, and investors call it Terra 2.0. It has traded on exchanges such as bybit, kucoin and Huobi. Binance, the world's largest cryptocurrency exchange, said Luna would be listed on Tuesday.
But its launch was not smooth.
According to coinmarketcap, Luna hit a peak of $19.53 last Saturday and fell to $4.39 a few hours later. Since then, its price has been set at about $5.90.
Analysts deeply doubt the success probability of Terra's blockchain restoration. It will have to compete with many other so-called "layer 1" networks, namely the infrastructure supporting cryptocurrencies such as Ethereum, Solana and Cardano.
Terra distributes Luna tokens through so-called "airdrops". Most will be awarded to those who held the classic Luna and ust before the crash to compensate these investors.
However, experts said that investors injured after the collapse of these cryptocurrencies are unlikely to trust Terra again. Vijay ayyar, the international head of the cryptocurrency exchange luno, said that people's "confidence in the project has dropped significantly".