After a multibillion-dollar crash, Luna is back

After a multibillion-dollar crash, Luna is back ...

Luna is making as much as the Phoenix.

Luna 2.0, a new Terra Luna token, is scheduled to launch on May 27, removing the ashes of the horrific crash that pushed the cryptocurrency market to its ground.

''''Terra 2.0 is Coming''''

Do Kwon, the founder of TerraForm Labs, proposed a new chain to replace the existing Terra network, while Luna 2.0 would replace the previous Luna version, which will be renamed Luna Classic.

Do Kwon, the co-founder of Do Kwon, has been approved by a majority of voters for his aim to revitalize the deteriorating ecosystem.

"Terra 2.0 is coming,," the company said. "With overwhelming support, the Terra ecosystem has approved Proposal 1623, claiming that a new blockchain will be formed and that our community remains intact."

About 200 million votes were cast in support of the plan, which accounted for around 65% of the majority. 41 million people voted "no" and 54 million abstained.

The actual holders of Terra Classic will receive the new Luna.

''''A New Terra Chain''''

TerraUSD, or UST, and its sister token, Luna, have fallen after UST lost their peg to the dollar, the foundation of it establishing itself as a stablecoin, which is a cryptocurrency linked to a more stable asset like the US dollar or gold.

When millions of investors wanted to redeem their tokens simultaneously, UST lost their dollar peg.

As we previously reported, at least $55 billion of market cap went from the 9th to the 13th. On social media, witnessies of financial ruin have followed.

UST is an algorithmic stablecoin, which is backed not by dollar reserves, but rather by Luna, a sister asset, which had to be burned or permanently destroyed through a computer code.

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Algorithmic stablecoins are different from centralised alternatives, like tether (USDT) or USD coin (USDC), which are backed by actual dollars or equivalent assets stored in a bank.

Terra reportedly claimed that a revival plan"will effectively create a new Terra chain without the algorithmic stablecoin." Terra will burn the remaining UST supply.

DeListing Woes

Crypto exchanges Binance and OKX changed the name of the token and the UST, in an effort to protect their customers.

Both exchanges said they will support Luna 2.0.

OKX informed on May 26 that "$LUNA and $UST withdrawal and deposit" will be temporarily frozen.

"These two markets will be delisted so these tokens can be renamed to $LUNC and $USTC.," OKX said. "Details can be found in the below announcement. $LUNA is still quite volatile, please handle your risk."

"I believe the whole industry must set a high bar when it comes to deciding whether or not they list or invest in stablecoins that are backed by things like algorithms," said Lennix Lai of OKX.

"If you are attempting to create something stable, supported by volatile assets, it will be vital that you establish a high collateralization ratio," Lai said.

''''How Truly Dumb Crypto Gamblers Really Are''''

"The Tarra Network airdrop will be distributed on #Binance," said Binance.

"The new Terra 2.0 token $LUNA will be distributed to eligible users based on the project''s distribution plan," Binance said. "The distribution ratio per account will be announced separately."

"$LUNA crashes 99.99%. Billions and millions lose. Entire net worths gone," says a commenter on Twitter. LUNA 2.0 Crypto investors:

Billy Markus, the co-founder of Dogecoin, did not hold back his feelings, tweeting that "luna 2.0 will show the world just how kindly dumb crypto gamblers are."

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