In recent weeks, the implosion of the Terra ecosystem has dominated the headlines. Certainly, users lost billions. In that regard, even Dogecoin co-founder Billy Markus criticized Terra’s attempt to launch LUNA 2.0 and called those who buy it “truly fools.”
Something that could be added in this case is that there are multiple whistleblowers who have expressed different versions of suspicious activities. Some even claim problems within the Terra hierarchy.
Examples of allegations include the manipulation of Terra’s retail investors by prominent entities. There has also been talk of the use of the Mirror Protocol to enrich high-level figures and the links of Terra’s founder, Do Kwon.
What is going on with Terra and the relaunch of LUNA?
On May 16, Do Kwon published the news of a relaunch of Terra. This plan initially involved forking the old chain into a new chain without the UST stablecoin component. Since then, the developers have stated that LUNA 2.0 will be a new chain, and not a fork.
The community reportedly voted “with overwhelming support” to pass Proposition 1623 on May 25, paving the way for the launch of LUNA 2.0. Therefore, the re-launch and airdrop of the token were scheduled for May 27, but an announcement on that day delayed it until May 28 at 06:00 GMT.
Does the whole community really agree?
It would be very optimistic to state that. First of all, many allege that the lack of disclosure on how LUNA 2.0 will get value is a “red flag”. Especially since it will be missing a stablecoin component.
Likewise, massive selling pressure can be foreseen once the award period ends, as holders seek to recover losses and flee to safer projects. And if we add to this a possible conflict of interest with the exchanges, since they may also be looking to recover losses, the formula seems chaotic.
The consensus on Twitter cryptocurrencies is very similar, with many users mocking the relaunch. In a way, Markus was one of these. For it he didn’t hold back when he tweeted his thoughts on the intelligence of LUNA 2.0 investors, whom he called “truly dumb crypto bettors.”
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