Insiders say LUNA Classic has no future but remain optimistic on Terra’s LUNA 2.0 price


  • Analysts believe LUNA Classic could continue its downtrend while Terra’s LUNA 2.0 could witness a rally.
  • Verified LUNA Classic validator, PFC, offered insights on the war room conversations before the Terra chain was restarted.
  • Do Kwon and Terraform Labs were ‘hands off’ in their approach to the colossal UST de-peg and Terra token’s crash. 

Do Kwon, CEO of Terraform Labs was least involved in the war room instituted before the launch of the new Terra chain, according to insiders who also revealed they are hopeful for LUNA 2.0 price, but have a negative outlook for LUNA Classic

Also read: Several investors remain bullish on Terra’s LUNA 2.0 price despite struggles to recovery

Do Kwon and Terraform Labs launched Terra’s LUNA 2.0 hands off

These insiders – verified LUNA validators involved in the launch of Terra’s new chain – revealed how Do Kwon and Terraform Labs were hands off in the “war room” instated before the new blockchain was released. Said validators ThorchainMaximalist and PFC, told CryptoSlate there were significant issues in the handling of the Terra LUNA crisis during which they lost a vast majority of their net worth

Based on chat logs from the “War room,” the group of validators and Do Kwon intended to restart the Terra chain for only one month. Whether this is still the goal remains unknown. Eventually, the group decided to restart the Terra chain, without taking the issue to community governance, with a green light from Do Kwon. 

The group had given up on on-chain governance for the reason that in the last hours of the colossal crash, people scooped up billions of LUNA Classic (formerly Terra tokens) from scratch. This would have left on-chain governance in the hands of the participant who accumulated most LUNA Classic tokens. 

Since the launch of the new chain, there have been numerous issues on Terra’s LUNA Classic and validators argue LUNC has no future. 

On-chain data revealed that LUNC is suffering a decline in social dominance since the launch of the new LUNA 2.0 token. LUNC’s dominance plummeted 84% within a week. Social dominance identifies whether the token is being discussed by market participants, or not. LUNA Classic therefore has lost its popularity in the community. 

Binance lost $1.6 billion of its investment in LUNA

Changpeng Zhao (CZ), the CEO of Binance revealed in a recent interview that Binance Labs made an investment of $3 million in Terra in 2018. Binance received 50 million LUNA tokens in exchange for their investment. 

Theoretically, Binance lost $1.6 billion of the investment they made at the top. CZ argued that Binance lost 53.3% of the invested capital and didn’t make any profit from the position. 

Unlike other large entities, Binance did not dump their LUNA token holdings on retail users during the crash, nor did the exchange purchase the algorithmic stablecoin UST. There have been allegations of Binance’s CEO supporting Do Kwon’s Terra re-launch and the new LUNA 2.0 token, however, CZ told Fortune in his interview that he has never spoken directly with Do Kwon. 

LUNA 2.0 price could breakout with a rally 

Insiders in the LUNA crash and the new Terra chain launch, validators - ThorchainMaximalist and PFC – say they appreciate the vesting of tokens on the blockchain. This will help both the community and builders, as the LUNA 2.0 chain will be different from Terra and most applications should function well on the new blockchain. 

Analysts have evaluated the LUNA 2.0 price chart and observed the recent 16% bounce in the token’s price. LUNA 2.0 price recouped its losses, while LUNC continues trending south. Michaël van de Poppe, CEO and founder of Eight Global, argues that LUNA 2.0 price could continue its uptrend and he is interested in long positions once the token flips the $6.60 to $6.80 level. 

FXStreet analysts believe shorting LUNA 2.0 token could be a profitable move for holders. For more information, watch this video:

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Week Ahead: Crypto’s doom or a new all-time high in the making? Premium

Week Ahead: Crypto’s doom or a new all-time high in the making?

Bitcoin price shows no signs of a directional bias as it hovers around $66,000. The 2019 BTC price fractal hints at a potential correction should the US Fed cut interest rates.

More Bitcoin News

Binance faces backlash following announcement to delist FET

Binance faces backlash following announcement to delist FET

Binance released an announcement stating it will delist FET, stirring FUD among holders. FET experienced a heavy price drop following the announcement, with crypto community members criticizing Binance. FET is down 8% following the announcement.

More Binance News

Ethereum resumes downtrend as Canada sees another staked ETH ETF launch

Ethereum resumes downtrend as Canada sees another staked ETH ETF launch

Ethereum (ETH) resumed its downward trend on Monday after a slight weekend recovery following the launch of the Canada-based Purpose Investment Staked ETH ETF.

More Ethereum News

Crypto ETFs experience heavy outflows after FOMC meeting

Crypto ETFs experience heavy outflows after FOMC meeting

CoinShares' weekly report reveals crypto ETFs experienced heavy outflows of over $600 million. US Bitcoin ETFs experienced the highest decline with $565 million in outflows. Bitcoin, Ethereum and Solana start week in decline.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP