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The LUNA 2.0 token plummeted by 70% just a few hours after its launch. On Saturday, May 28, the new version of the Terra blockchain, “Terra 2.0”, was activated. Terra LUNA 2.0 launched at a price of $19.53 and is currently trading at $8.9. However, skeptical investors are dumping the new LUNA token airdropped to them. The Luna2.0, the beacon of hope for the Terraform Labs to revive the Terra ecosystem crashed 132 per cent on the day of its launch. The cryptocurrency was trading at Luna 2.0, a new Terra Luna token, is set to launch on May 27, rising from the ashes of the spectacular crash that rocked the cryptocurrency market right down to its socks. The major update that will get rid of the UST stablecoin that led to the crash of the first Luna token will increase the success of the Luna 2.0. It is therefore expected that when the current bear Since its relaunch, LUNA 2.0 has continued to fall and is now down -84.74% from a high of $19.53 after Terra’s ecosystem was reactivated with the coin’s airdrop

Luna 2.0 Crash: Why the New Terra LUNA Plunged Over 60% on Launch Day

The crypto world watched with bated breath as Terra LUNA 2.0, the successor to the collapsed Terra ecosystem, launched on Saturday, May 28th. Billed as a revival, the new blockchain and token, also known as “Terra 2.0”, aimed to rise from the ashes of the spectacular crash that rocked the cryptocurrency market. The update intended to get rid of the UST stablecoin that led to the initial LUNA's downfall and ideally increase the success of Luna 2.0. However, the launch was far from smooth.

The LUNA 2.0 token plummeted by 70% just a few hours after its launch. Trading started with a price of $19.53, but the value quickly tanked. The Luna2.0, which was intended to be a beacon of hope for the Terraform Labs to revive the Terra ecosystem, in fact, crashed 132 per cent on the day of its launch (although this figure may include fluctuations after the initial price was set).

What Caused the LUNA 2.0 Crash?

Several factors contributed to the sharp decline in LUNA 2.0's value on its launch day:

  • Skeptical Investors: Many investors, burned by the initial Terra LUNA and UST collapse, were hesitant to embrace the new token. Skeptical investors are dumping the new LUNA token airdropped to them.
  • Airdrop Sell-Off: The airdrop of LUNA 2.0 to existing LUNA holders was meant to compensate for losses, but many recipients immediately sold their newly acquired tokens, increasing the selling pressure.
  • Market Sentiment: The broader cryptocurrency market remains in a bearish trend, making it difficult for any new project to gain significant traction. It is expected that when the current bear market lightens, LUNA 2.0 will begin to thrive.
  • Lack of Trust: The collapse of the original LUNA and UST eroded trust in Terraform Labs and its ability to manage a stable and reliable ecosystem.

LUNA 2.0 Price Performance Since Launch

The initial crash was just the beginning. Since its relaunch, LUNA 2.0 has continued to fall and is now down -84.74% from a high of $19.53 after Terra’s ecosystem was reactivated with the coin’s airdrop. Currently, Terra LUNA 2.0 launched at a price of $19.53 and is currently trading at $8.9. The cryptocurrency was trading at a low price.

Will LUNA 2.0 Recover?

The future of LUNA 2.0 remains uncertain. The success of the new Terra blockchain will depend on its ability to regain investor trust, attract new projects, and demonstrate long-term stability. As Luna 2.0, a new Terra Luna token, is set to launch on May 27, the market will continue to watch its performance closely. However, the initial launch day crash serves as a stark reminder of the risks involved in the cryptocurrency market and the challenges of rebuilding after a significant failure.

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