After debuting on Saturday, May 28, the new LUNA token plunged by over 70% within hours of tapping $30 based on data by CoinGecko, provoking yet another bushel of criticism from the crypto community.
The launch of the new version, also referred to as “Terra’s rebirth” had been scheduled for Friday, 27th May, ZyCrypto reported. However, Terraform Labs postponed the launch to May 28th, stating that the team was still coordinating the launch of the new network with various stakeholders to guarantee a smooth rollout.
Even before the market dive, a number of crypto proponents had been skeptical about LUNA 2.0 surviving. Some believe that the Terra team is up to no good and is just in for the quick buck, given the speed at which they launched the new network. Lately, the Terra team as well as its founder Do Kwon have been busy highlighting major listing announcements for the new LUNA token from different crypto exchanges.
“Luna 2.0 will show you the world just how truly dump crypto gamblers really are,” Dogecoin co-founder Billy Markus, aka “Shibetoshi Nakamoto” had written, suggesting that the new token version would only cause more misery.
“If you liked losing all your money with LUNA 1.0, you’re going to love losing all your money with LUNA 2.0,” Douglas A. Boneparth, president at Bone Fide Wealth tweeted on Saturday.
Do Kwon seems to have also picked up his usual assertions following the launch. Jaewoo Cho, a blockchain assistant professor at Hungsung University raised concerns on Sunday over a skewed code that was causing tokens of all users (including those of exchanges) to be delegated to random (or pre-registered validators).
“In my opinion, this is unethical and against self-sovereignty,” Cho tweeted. “I haven’t seen any announcement regarding this code.” He added, asking all Terra 2.0 holders to re-delegate or undelegated their power. Kwon hit back accusing the pundit of not reading the governance proposal which allegedly allowed for the delegation. “Cheers, FUD harder,” Kwon told Cho.
In another tweet, a tweep wrote, “you are making fool of everyone with LUNA 2.0. This will also go down the drain”. Kwon simply replied, “Okay.”
Kwon has previously called his critics “poor” and stated in an old video that Terra has something called the “Protocol Armageddon,” which he described as a “Kill Switch.” He implied that the Terra team may “pull the trigger and we’re gone in 24 hours. We burn all of our assets, we cut all of our ties, and it’s nothing.”
Some crypto adherents don’t think this action is “necessarily malicious” as it could just be an additional decentralization measure, but it also points to a certain level of planning surrounding what happened to the Terra ecosystem.
Pundits say this seemingly abrasive behavior seems to have been carried on to the new network and now threatens Terra’s future again.
LUNA 2.0 has a total supply of 1 billion tokens. As of writing, the cryptocurrency is trading at $6.33, up 4.39% in the past 24 hours.