The entire cryptocurrency market is still trying to recover from the crash earlier this month following the fall of the stable Tara currency. On Saturday, Tara developers re-launched a new version of Luna called Luna 2.0, but the currency has since collapsed by tens of percent.
The Luna, the cryptocurrency linked to the Tara, was supposed to help keep the value of the stable currency pegged to the dollar. The launch follows a vote by Terra users in favor of Luna’s return, but not by Terra – the stable currency that has fallen below its dollar peg.
TerraUSD, or UST, is what is known as a stable currency, or stablecoin. A stable currency is a digital currency that relies on code and cryptocurrency – in this case, Luna – to maintain value linked to the dollar exchange rate. At its peak, the old luna – now known as the “classic luna” – had a market share of over $ 40 billion. But as digital currency prices plummeted, investors fled their holdings in UST, sending it into freefall and with it the amusement.
Now as mentioned Luna is back again, in a version known by investors as Luna 2.0, on the platformBlockchain The revamped Terra 2.0. The new version of Luna is already traded on a number of crypto exchanges, including Bybit, Kucoin and Huobi. BonesThe world’s largest crypto exchange, said it would introduce Luna later this week.
But trading in the remake of Luna does not start with good performance. After peaking at nearly $ 20 on Saturday, Luna dropped to $ 4.39 just hours later, according to CoinGecko. Since then it has stabilized at a value of about $ 5.90.
Analysts are also very skeptical about the success of Tara’s renewed blockchain platform. It will have to compete with a host of other networks known as “Stratum 1” – the infrastructure that underlies cryptocurrencies such as Etherium, Solana and Cardano. Tara distributes Luna coins through so-called “Airdrop” – a mechanism that allows investors to win coins, according to their holdings. Most of the currencies are now planned to reach those who held Luna Classic and UST before their collapse, with the aim of compensating the investors who lost, but experts speculate that the many investors burned following the collapse are unlikely to rely on Terra again.