The newly created Terra LUNA token’s launch isn’t going as anticipated, as the token has plummeted more than 80% from its launch highs of $30.
The downfall of the multibillion-dollar Terra network has created a wave of fear, anxiety, and skepticism in the crypto market. The community chose to fork the original chain and create a new one in a bid to save the ecosystem.
The fork effectively resulted in the creation of a new Terra chain, albeit without the algorithmic stablecoin UST. Terra ($LUNA) is the new chain, whereas Terra Classic ($LUNC) is the previous chain. The new LUNA token was distributed as an airdrop to LUNA Classic stakers, LUNA Classic holders, residual algorithmic stable coin UST holders, and Terra Classic necessary app developers.
However, after only a few hours of circulation, the newly created Terra chain network token prices plummeted. The price of the coin reached $30 per token in the first hour after it was launched on ByBit, but it is now trading at $5.7, down 81 percent from its peak.
The airdrop was featured in the new project’s tokenomics to recompense investors who lost money in the collapse; nevertheless, the newly distributed token does not ensure that investors will recoup all crash-related losses, but it does mark the beginning of the Terra community’s second chapter.
Pre-attack $LUNA holders will receive 35% of the new token supply, while Pre-attack aUST holders will receive 10%, Post-attack $LUNA holders will receive 10%, and Post-attack $UST holders will receive 15%, with the remaining 30% going into the community pool.
Eligible users have already begun to get their airdrops. However, to avoid the new token, repeat the previous death spiral. Only 30% of the tokens will be distributed at genesis to eligible users, with the remaining 70% distributed over a two-year period with a six-month peak.