A new version of the collapsed luna cryptocurrency is already live on major exchanges but it got off to a bad start.
Supporters of the Terra blockchain project voted to revive luna last week but not terraUSD, a so-called “stablecoin” that plunged below its intended peg to the dollar, creating panic in the crypto market.
TerraUSD, or UST relied on code and a sister token, luna, to maintain a $1 value. But when the digital currency prices fell, investors ditched the stablecoin, sending UST tumblin, taking Luna down with it.
During its peak, the old luna now known as “luna classic” had a circulating supply of over $40 billion.
Luna now has a new version, called Terra 2.0. It is now available on exchanges including Bybit, Kucoin and Huobi. The world’s largest crypto exchange, Binance, says it will list luna on Tuesday.
However, its launch did not turn out well.
Just hours after reaching a peak of $19.53 on Saturday, luna plummeted as low as $4.39 according to CoinMarketCap data. It has since settled at a price of around $5.90.
Luna tokens is distributed by Terra through what’s called an “airdrop.” Most of the token will go to those who held luna classic and UST before their collapse, as a form of compensation to its investors.
However, many investors burned by the saga are unlikely to trust Terra a second time, experts say. Vijay Ayyar, head of international at crypto exchange Luno, said there’s been a “massive loss in confidence” in the project.