The expected date for Terra Luna has finally arrived. Will the anxious days end for Luna, who is known to start a new project on May 27?
With the effect of Bitcoins, which were sold in the market in a short time, the leading crypto currency fell to 26 thousand 700 dollars on May 12 and saw the bottom of 1.5 years. After the UST lost its stability, the Luna Foundation transferred the Bitcoins it held as a reserve to the US Gemini and Binance exchanges on May 9-10.
Will Luna be able to make its investors smile again?
Crypto token (token) Luna, which has come to the fore with its recent decline, has inflicted more than $ 40 billion in losses on its investors. The value of Luna, which shocked the crypto money markets by signing a historical decline, has now dropped to almost zero.
Luna, which stopped making its investor smile on May 12, lost almost 99 percent of its value. Looking at the total market volume, the value loss was more than $ 25 billion. As a result, the wealth of many investors was suddenly zeroed. Among them is Changpeng Zhao, the founder of crypto exchange Binance, known as ‘CZ’ for short.
After the drop, Zhao tweeted that the return on Luna investments fell to $2,200 and joked, “I’m poor again.” Binance’s Luna assets were worth $1.6 billion at the token’s peak price in early April.
Poor again.https://t.co/88v2U2vjfM— CZ 🔶 Binance (@cz_binance) May 17, 2022
In his tweet just a day ago, Zhao stated that Binance has 15 million Luna tokens. Emphasizing that Binance bought them in 2018 in return for an investment of 3 million dollars in the Terra network on which Luna is based, Zhao added that Luna tokens were not transferred or sold as of May 16.
2/ Binance received 15,000,000 LUNA (at peak worth $1.6 billion USD, now not much) as part of the original ($3m) invest. 560x return at peak. It still sits on the address we received at 👇. Never moved or sold.— CZ 🔶 Binance (@cz_binance) May 16, 2022
At the time our news went live, Luna was trading at $0.000144.
It is not yet clear how long the process will continue, but it is stated that LUNA coin will not be able to return to its old level for a long time.
‘PAY THE RETAIL INVESTORS FIRST’
Zhao suffered a huge loss, but said that retail investors who lost money during Luna’s collapse should still be paid back before Binance:
“To set an example in protecting users, Binance will ask the Terra project team to first compensate its retail users and finally its own.”
Founded by Zhao, Binance has become the world’s largest cryptocurrency exchange by daily trading volumes. Binance’s average daily volume is over 2 billion with over 14,000 transactions per second.
ITS WEALTH IS COMING FROM BINANCE SHARE
Despite tweeting, “I’m poor again,” 45-year-old Zhao, of course, did not run out of money. With an estimated net worth of around $14.8 billion, the majority of Zhao’s wealth probably comes from his 70 percent stake in Binance, according to Forbes.
Fortune magazine reported in March that Binance’s market cap was estimated at six times that of its closest competitor.
HE EVEN HAS HANDED A TATTOO
As the crypto community struggles to recover from the impact of Luna’s explosion, some say, “We told you so”, while others are upset that they support the once-popular crypto.
For example, Galaxy Digital CEO Mike Novogratz, who had a wolf tattooed with Luna on his arm, said in a statement to shareholders: “It was a great idea that failed.”
MOST RESERVES USED TO SUPPORT THE ECOSYSTEM
Many retail investors lost money as Terra and her network fell apart. Many forum pages have heartbreaking stories of people who invested in Luna or UST and lost their savings. These individuals may recover a small portion of their investment, but considering that the Luna Foundation spends most of its reserves to support the ecosystem, there is very little money left.
Terra’s founder Do Kwon may face criminal charges, but it’s too early to tell how that will turn out, South Korean media reported.
PRICES HAVE BEEN UNBALANCED
Es explained the decline in UST as follows:
“Bitcoin was already falling and with this sharp drop, there was a serious selling wave on the UST side. UST, which should be stable at 1 dollar, declined to 0.60 levels in the first place. However, the algorithm started to work in the background and the new Luna was printed and sold very quickly. The whole purpose of the algorithm was to sell the Lunas in hand and stabilize the UST prices. However, the price balance has deteriorated so much that UST prices have become unbalanced. As that price could not stabilize, more Lunas were printed, which drove the price down sharply with significant selling pressure.”
DREAM OF GOING BACK TO THE OLD DAYS
While some lost all their assets due to the collapse in Luna, some investors continue to invest with the expectation of a great return. ‘Would you expect a comeback in Luna?’ Es, to whom we posed the question, said that this is not possible:
“It is no longer possible for Luna to return to its old prices. Because there is a significant amount of printed Luna and the majority of them are now in users’ wallets. As a result, users cannot burn the tokens in their wallets. Luna has lost a lot of trust and it is now a dream to go back to her old days. “
Binance announces support for “Terra Rebirth”
Binance, the world’s largest crypto exchange by trading volume, recently announced that it is working with the Terra team to rescue the ailing network. Earlier today, it was reported that the Terra community has approved the reconfiguration of Terra Blockchain, which will airdrop LUNA 2.0 tokens to affected LUNA investors. The new Blockchain was released after a management vote went in favour. The Binance team, which has been making statements about the crash for a while, assured the crypto community that it is working closely with the Terra team on the recovery plan. The following tweet was said:
The Terra community just passed a vote to ‘Rebirth Terra Network’.— Binance (@binance) May 25, 2022
We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment. Stay tuned for further updates.
Binance adds that it aims to compensate users for the collapse with the best possible treatment.
The new Blockchain will be released on Friday
Following the collapse of the Terra ecosystem, Terraform Labs co-founder and CEO Do Kwon proposed the creation of an entirely new blockchain, initially described as a hard fork. However, the Terra team later corrected the misunderstanding.
According to the details provided in the proposal, Terra 2.0 is scheduled to go live on Friday. After launch, the LUNA will be made available for trading. As we conveyed as Kriptokoin.com, these tokens will be airdropped to existing stakeholders with a predetermined percentage. Also, most tokens will be subject to vesting periods to avoid immediate disposals.
LUNA price jumped after the announcement
Terra (LUNA) is up more than 15% from the daily low of $0.0001548 after the announcement. At the time of writing, it is trading at $0.0001864.Read more
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.