Terraform Labs CEO Do Kwon Returns With Luna 2.0, Does Little To Stem Terra’s Fall

The big restoration plan of Do Kwon, CEO and co-founder of Terraform Labs, to save the Terra ecosystem from its current downward spiral, has failed. Kwon debuted with Luna 2.0, a redesigned version of the Luna coin, on Saturday. 

According to various media reports, De Kwon wanted to verify all faulty blocks and transactions on the Blockchain network, believing such a move would resurrect the coin. This strategy was to be implemented using a process known as a ‘hard fork’, according to various media reports. 

According to the company, a ‘hard fork’ would assure that Terra is not linked to the current Terra Blockchain, but rather to a new Blockchain. Later on, Terraform Labs would swap the Terra token to TerraClassic, a Stablecoin that is not algorithmically constructed. 

Unfortunately, Luna 2.0 is now well on its way to becoming a flop. It reached a high of over $20 shortly after Luna 2.0 was released. But today, it is worth roughly $6.27, a loss of over 75 per cent, according to CoinMarketCap, which calculates the value of a cryptocurrency. 

It’s also worth noting that Terra and Luna are sister coins, and in order to keep the balance between them, users had to acquire Terra and then swap it for Luna, earning a tiny profit. With both coins collapsing after the collapse of the supply-demand ratio, De Kwon believed that the only way to save them was by introducing a new coin. 

Terra 2.0 went live on May 28 at 6 am UTC, according to an earlier Terraform Labs release. The company also announced an airdrop of additional Luna tokens, which was to be processed in the future. The primary goal of a crypto airdrop is to raise awareness for new initiatives and services. The goal is to give additional tokens to thousands of crypto wallet addresses in the hopes that more people would connect with it and promote the project – even if it’s just to learn how to cash out the free tokens into something else. 

This followed the announcement of support for the new Terra plan by global cryptocurrency exchanges, such as Binance, FTX, Crypto.com, Huobi, Bitfinex, Bybit, Gate io, Bitrue, and Kucoin. 

Incidentally, Binance CEO Chengpeng Zhao had previously criticised the hard fork idea to resurrect the Terra Blockchain ecosystem. He had even suggested whether burning of Terra coins would help. Burning a token essentially implies transferring it to a dead wallet, where it will never be retrieved, hence reducing the coin’s supply and thus increasing the demand.