LUNA 2.0 Price Drops, Signs Of Declining Investor Confidence?

JAKARTA – Efforts to restore the Terra ecosystem from collapse have had a temporary positive impact with the launch of LUNA 2.0. Launched on May 28, 2022, LUNA 2.0 has lost 73.2 percent of its all-time high on launch day.

Previously, the older version of Terra (LUNA), which had a free fall price, was renamed Terra Classic (LUNC). While the new token bears the name of the main token Terra (LUNA). Developers have distributed airdrops to compensate investors for losses. However, it did not provide a lasting positive impact.

LUNA 2.0 stands alone and is not backed by the UST stablecoin as in previous versions. However, since its first launch the price of this new LUNA has lost more than 70 percent of its value.

Terra is very optimistic about the launch of the new Terra blockchain. Meanwhile, investors are the opposite.

"There's a big question mark. Whether it will work will require a lot of rebuilding trust with investors and builders," said Felix Hartmann, managing partner of Hartmann Capital.

According to Hartmann, recovering the Terra ecosystem from its collapse “is a must because it will likely start from the ground up, but will also require a lot of management on the part of the founders as they will no longer have a multibillion dollar market valuation,” Hartman continued.

Furthermore, he stated to succeed, they would take about one to two years. However, the efforts of Do Kwon cs to restore the Terra ecosystem have not been able to restore the confidence of crypto investors in LUNA.

Data from Coingecko shows that LUNA 2.0 is trading at IDR 77,495. LUNA prices have decreased by 14.9 percent in the past week. Meanwhile, the highest price of all time was recorded on the day of its launch at the level of IDR 274,365 on May 28, 2022. From its ATH, the price of LUNA fell 73.2 percent.