According to Bloomberg News, if you require a reminder that in the world of crypto, memories are short, you must look no further but the relaunch of the Luna token, which has played an instrumental role in the collapse of the Terra blockchain ecosystem that has already cost investors billions and a little more than just two weeks back.
More into the matter
There is already hype that has been building around the digital token, which is in the reissuing process as part of a proposal that was put forward on Wednesday. The plan aims to salvage the network following the affiliation of Luna to stablecoin, TerraUSD (UST), which has lost its 1-to-1 peg against the dollar and helped in triggering a collapse in the digital asset prices.
Under the approved measure, there will be splitting off the original blockchain and be known as Terra Classic, whereas Luna, which dropped close to almost zero in the current month, will be renamed Luna Classic with the ticker LUNC. The new Terra blockchain will start to run a coin under the prevailing Luna name and ticker and will not include UST stable coin. The new Luna will be distributed to the previous holders possessing Luna and UST in what is being called airdrop, as stated on Thursday.
Bloomberg News reports that the crypto exchanges have already started declaring plans related to the list of tokens. In contrast, predictions are being advocated by the experts that there will be a rise in making use of the industry parlance of the so-called “to the moon.” This will not be too surprising since the world of crypto trading, which is very much like gambling, will often follow the classic loss chasing patterns, where the investors are amplifying their endeavors to foster the success of a new blockchain in a bet that might invariably recoup the losses that have taken place earlier.
Several thousand investors have lost their hard-earned cash due to the Terra collapse, with the cost of UST and Luna has dropped to almost zero. The price of Luna soared by about 18% Wednesday, although it remained at lower than a fraction of a cent as per data that has been compiled by Bloomberg show. In April, it traded beyond $100.
Whether the cost of the new Luna token will surge or not is still not clear. Aside from keeping existing projects on the Terra blockchain, the new blockchain will also require support from the major exchanges. But if the new Luna token is listed on a major exchange, it would offer greater liquidity for the token, which can invariably appreciate its value.
