The cryptocurrency market is shaking. However, the developers of Terra blockchain will launch LUNA 2.0 on Friday. According to the crypto exchange company HitBTC, LUNA 2.0 will face the markets on May 27. Huobi also confirmed the announcement.
Why is LUNA back?
The founder of Luna, Do Kwon, introduced a Terra Ecosystem Restoration Plan.
In early May, Do Kwon involved airdropping new tokens to holders of the Luna tokens, developing a new blockchain. Skepticism was part of the response after the announcement.
"The crypto lost 99% of its value in just 48 hours," Benzinga reported.
"The drop was triggered when the blockchain's stablecoin TerraUSD UST/USD became unpegged from the dollar, causing a free-fall in the related price of Luna."
On-chain voters approved the creation of LUNA 2.0 and the relaunching of the Terra blockchain.
More than 65% of the community approved the plan, and just 13.2% opposed it.
The largest crypto exchange platform, Binance, mentioned that they are coordinating with Terra to launch LUNA 2.0.
LUNA 2.0 wants to rescue the Terra Luna ecosystem following the stablecoin collapse.
After losing most of its value, the current LUNA token won't vanish. LUNA 2.0 and its previous version will co-exist.
Reports say Terra's investors lost $40 billion. However, Do Kwon wants to leave the past behind and focus on the new crypto.
However, the Seoul Metropolitan Police doesn't want the Luna Foundation Guard to prohibit them from withdrawing any funds.
"The Seoul Metropolitan Police are looking to freeze the Luna Foundation Guard's (LFG) company funds in order to prohibit them from withdrawing any funds," Benzinga reported.
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