A WEEK after the relaunch of LUNA and Terra’s project continues to look beleaguered.
The value of Luna 2.0 remains below its launch price on May 28.
When the digital coin was originally priced at $17.80 but is now trailing below $7.
Terra said in a statement after the launch of its new coin: “Today marks the beginning of the next chapter for the Terra community.
“One in which our potential knows no bounds & our collective creativity can flourish.”
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However, the continued low trading price has done little to instil confidence that Terra’s planned revival of the cryptocurrency has worked.
Analysts believe the crash witnessed last month by the original Luna coin had such a devastating impact, any new coins going forward will now struggle to break through.
Teana Baker-Taylor, vice-president of policy and regulatory strategy at crypto firm Circle, said that following the crash: “We saw this flight to safety from terra to rival stable coins and into assets people perceive to be more established.
“And, so, I think that anything that’s new, or overly technical, will probably have people a little standoffish.”
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On May 9, the original Luna coin – now known as Luna Classic – crashed to a price of $0.
It destabilised the whole crypto sphere sending the value of coin tumbling.
After consulting with members of the Luna community, Terra launched Luna 2.0 last weekend.
Crypto exchanges Bybit, Kucoin, Kraken, MEXC, OKK, Bitrue, and BingX all started trading the coin immediately on May 28.
The coin initially saw its value surge to as high as $30 before crashing by 70 per cent.
Hopes were pinned on Binance – the largest trading crypto exchange in the world – to help bolster confidence after it delayed its listing of Luna 2.0 until May 31.
While the price once again rallied following the airdrop into accounts on the platform, the rise was short lived.
The cryptocurrency now has a total market cap of $1.37billion, say below the $27.8billion value of Luna Classic the day before it crashed.
