What is Luna 2.0? Gambling, Speculative Asset, or Prized Possession

Vinod Dsouza
Terra Luna Hard Fork
Source: fxempire.com

After TerraUST and Luna crashed to $0, Terraform Labs founder Do Kwon suggested a revival plan giving birth to Luna 2.0. The new version is not connected to the UST and has no algorithmic elements either. Luna 2.0 received 65.50% of the governance votes that came in favor of Do Kwon’s proposal to revive the Terra ecosystem. Also, the new Luna was launched on May 27 with top exchanges announcing that users can transact it from day-1.

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Terra Luna 2.0 is still seen by skeptics eyes and is not the most trusted cryptocurrency at present. Several questions about the Luna foundation Guard (LGF) and Do Kwon’s behavior and integrity have remained unanswered.

Fadi Aboualfa, the Head of Research at crypto brokerage firm Copper, revealed to Bloomberg that Luna 2.0 is just pure gambling. The analyst called Luna a “tarnished brand” and also called its overall purpose in the industry “pointless”.

“This is pure gambling like crypto has never seen before,” he said and continued, “One of the most important things about crypto is the brand or marketing and community. Terra has burned its community, and its brand is tarnished. Whatever they do here is going to be pointless.”

Read More: Terra Luna: South Korea to Launch New Crypto Oversight Committee

Terra Luna 2.0 Performance

Terra LUNA
Source: Pixabay

Luna hit the indices at a starting price of $17.8 and slumped 80% on launch day. It reached its all-time high post-launch touching $19.54 and fell sharply to $6 the same day. However, during the weekend Luna fell to its lowest at $4.39, sending jitters that another collapse might be on the cards.

Nonetheless, Luna’s saving grace came when Binance listed it yesterday and it jumped 90% in the span of 24-hours. Binance opened an influx of investors into Luna making its trading volume soar. Not surprisingly, the buying pressure for Luna didn’t sustain for more than a day and is now down double digits in the indices.

The ‘rebirth’ crypto nearly fell 30% today and is struggling to trade with double digits. The real and true test for Luna and its founder Do Kwon will now begin. At press time, Luna was trading at $7.14 and is down 26% in the 24-hours day trade.