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The new Terra blockchain will launch the coin under the existing name and ticker LUNA.
The developers of the unsuccessful stablecoin TerraUSD (UST) voted to abandon the token in favor of creating a new cryptocurrency blockchain and a new digital asset a few weeks after the collapse. Under the Terra ecosystem restoration plan, developers will create a new Terra blockchain with a revived LUNA token.
Terra and LUNA move to a new blockchain, while UST remains in the old one
Unlike most other large stablecoins backed by other assets, the value of TerraUSD (UST) was secured through complex algorithmic processes associated with another paired token called LUNA. Both tokens have lost almost all of their value since the UST lost its 1:1 peg to the U.S. dollar earlier this month.
Under the recently approved Restoration Plan by Do Kwon, the founder of Terra, the original blockchain will be called Terra Classic, and its own TOKEN LUNA, whose value this month fell to almost zero, will be renamed LUNA Classic with the ticker LUNC.
The new Terra blockchain will start working with the coin under the existing name and ticker LUNA and will not include the TerraUSD (UST) stablecoin.
“Terra 2.0 is coming. With overwhelming support, the Terra ecosystem voted to pass Proposal 1623 calling for the creation of a new blockchain and the preservation of our community.” Says on the project’s Twitter account.
Terra supporters will distribute the new LUNA token to LUNA Classic and UST holders. In a tweet, Terra said it would work with crypto exchanges Binance and Bybit to distribute the new asset to people who hold LUNA Classic and UST on exchanges.
This process means that Terraform Labs is effectively abandoning the TerraUSD or UST stablecoin, which will henceforth only be traded on the Terra Classic blockchain. Designed to maintain a 1-to-1 dollar peg, it traded around 10 cents on Wednesday.
TerraUSD, once the world’s third-largest stablecoin, lost its value earlier this month, scaring cryptocurrency investors and partly contributing to the fall of Bitcoin and the market as a whole.
Exchanges will support the decision of Do Kwon
The largest cryptocurrency exchanges ready to support the new Terra blockchain and its updated cryptocurrency LUNA. FTX, Gate and Upbit hold a drop of LUNA 2.0 tokens. Binance and Huobi so far they have shown words of support but have not announced anything else.
Today it became known that Russian binance users will not be able to participate in the airdrop of the new LUNA token due to the sanctions imposed. The exchange offers users to withdraw old tokens to other exchanges.
Along with market risks, residents of the Russian Federation are also subject to regulatory risks. Do not forget about this and it is better to choose exchanges that adhere to a neutral policy towards their users.
#Terra #LUNA #UST