The billion-dollar digital asset ecosystem LUNA-Terra’s fall in May 2022 may have been the biggest cryptocurrency crash in the industry’s history.
The value of LUNA, Terra’s native token intended to support the price of UST, also nearly reached zero in a single week. Before the crash, two of the top ten cryptocurrencies were UST and LUNA.
Many investors lost their entire life savings as a result of the widespread panic that the crash caused. Do Kwon came up with a recovery plan to save the LUNA ecosystem. Did it work?
What was Do Kwon’s LUNA Revive Plan?
Do Kwon, the developer of Terra, presented Terra Ecosystem Revival Plan 2 after the system failed.
On May 28, 2022, the revamped Terra blockchain went live. While operating in the interim, the previous blockchain, known as “Terra Classic,” saw little to no activity and had no chance of expansion.
The result was the creation of two Terra networks. The first blockchain is the original blockchain, followed by the UST stablecoin and its native token, now called Luna Classic (LUNC). The second is a fresh blockchain with a new token called Luna (LUNA).
Is the Revival Plan Working?
LUNC has lost 12% over the past 24 hours and is currently trading at $0.0004080. Despite the difficult market circumstances, LUNC has managed to make some gains. During the previous 14 and 7 days, LUNC showed astounding gains of 202.8% and 57.4%, respectively. This is a significant gain, particularly given the rambling bear market.
Since TerraUSD is still far from its $1 peg, the UST rebound has not yet taken place. The long-term implications and effects of the plan can only be assessed over time.