Within 72 Hours Since Its Launch, Terra LUNA 2.0 Crashes by 55%

Do Kwon and Terraform Labs' revival of Terra wasn't well accepted by investors.

Terra's collapse will be regarded as the worst crypto tragedy, but the blockchain's crew isn't giving up.

Terraform Labs issued Terra 2.0 three days ago to bring back investors, but investors have a different agenda for the coin.

Terra LUNA 2.0 Launch Flop

Terra 2.0, launched with a circulating supply of 210 million LUNA and a max supply of 1 billion LUNA, reinitiated the blockchain and brought back all the DeFi protocols.

Terra started airdropping tokens to investors who owned LUNA classic (LUNC). Terra tweeted about the numerous uses for new LUNA, including staking it on Terra Station to receive incentives and participate in governance choices, utilizing it on dApps upon launch, and exchanging it on an exchange.

Almost every major cryptocurrency exchange backed LUNA's listing. Binance airdropped tokens to users depending on their holdings.

Investors weren't pleased. Most customers were ineligible for the new LUNA airdrop since they sold it when the price fell on May 5.

Most had left the LUNC market before the new strategy was unveiled.

Those still holding LUNC are dumping the new LUNA token as soon as they get it.

New crash cause

LUNA crashed during the previous 72 hours due to the dumping. The cryptocurrency launched at $17.8 and rose to $19.5 before plummeting to $4.19.

The price has rebounded marginally in the previous 24 hours, but it's still 57% below debut, at $8.4.

It's too early to tell whether Terra can recover from the current hardship and restore investors' trust, but it will take a long time to reach its previous highs.