The new Terra blockchain (LUNA) was launched on Saturday, and the recently released LUNA token demonstrated extremely volatile trading on the first day before stabilizing and gaining strength later in the weekend. Despite the fact that the new LUNA token has become a controversial project, it can already be sold on a number of major exchanges.
According to Do Kwon, CEO of the development company Terra Terraform Labs , a new network with network ID Phoenix-1 was launched on May 28 at 06:00 UTC. The main Pheonix-1 network now runs and produces blocks — public node services, wallets and browsers should be launched soon, the controversial founder of Terra tweeted on Saturday.
Aside from announcing the launch, Terra’s usually outspoken founder hasn’t said anything publicly other than retweets of ads from the exchanges where the new token is traded.
The first exchange to make the new token available for trading on Saturday was Bybit , which announced that the markets were open about 10 minutes after the handout. The exchange was followed by Kucoin about an hour later.
On Bybit, the price of the new LUNA token opened at $0.5 and then rose rapidly, reaching a peak of $30 within the first hour of trading. The price then fell to a low of $3.5 and then stabilized at around $5.5.
Meanwhile, on Kucoin, the price opened at $5 and then peaked at just over $6 on Monday morning in Europe.
As of Monday at 10:25 UTC, LUNA was trading at $6.20, up a few percent for the day and 65 percent lower in two days, according to Koingeko.
Luna price on Bybit:
According to CoinGecko exchange data, in addition to the two aforementioned exchanges, at the time of writing, the new token was traded on OKX , Huobi Global , Gate.io , Kraken , Bitfinex and MEXC Global .
Of luna’s 1 billion new tokens, only 21 million went into circulation through Saturday’s giveaway. The remaining stocks will be released in stages, according to the official terras modernization plan.
Luna Classic rises
And while the new LUNA token was launched, the old one, now called Luna Classic (LUNC), has grown in value.
At 10:25 UTC, the LUNC was trading at $0.00014471, up 82% on the day but still down more than 23% in the last 7 days. According to CoinGecko, despite falling from a price of more than $80 in early May, the token still ranks 75th among the most valuable cryptocurrencies by market capitalization.
Luna Classic has already been supported by some members of the community who are skeptical of Do Kwon and his plan to reinvent Terra. Among them was one user who even organized a campaign. GoFundMe to bring Luna Classic to $0.07. Others, such as crypto YouTuber Ben Armstrong, tweeted, “Never buy LUNA again.” Not 2.0, not 3.0, not 3.14.
Sometimes you just have to accept your loss. The experiment failed. Go ahead, Armstrong added.
Kraken CEO Defends Listing
Faced with why Kraken listed a new LUNA token after seeing what happened to the old one, the exchange’s CEO Jesse Powell said Sunday that he doesn’t necessarily consider the two tokens to be related.
Is there a technical dismantling of LUNA2? Does LUNA2 have the same drawbacks? “I’m not a coin expert, but LUNA2 probably learned something from LUNA,” Powell said.
Powell added that exchanges should respond to customer requests, and stressed that listing is not an endorsement. We are here to manage the market, to promote price setting, and not to choose winners and losers, said the CEO of the exchange.
Not a single attacker
Meanwhile, new light was shed on the events that eventually led to the collapse of the original Terra network and its algorithmic stablecoin terraUSD (UST).
According to a crypto research company Nansen , there was not a single attacker responsible for the krah. Instead, the crash occurred as a result of the actions of several larger players, including the company Celsius Network (CEL), engaged in crypto-lending and borrowing.
According to Nansen, these players withdrew ust for several hundred million dollars from Anchor Protocol (ANC), the flagship decentralized finance (DeFi) protocol on Terra, where users were promised a 20% return on their UST deposits as the Terra ecosystem collapsed.
Celsius CEO Alex Mashinsky previously commented on his firm’s role in the drama surrounding the collapse of Terra, saying on May 11 that all facilities are safe and that we continue to operate as usual.
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