Terra Rebirth
The past few weeks have been quite the emotional roller coaster in the world of Cryptocurrency with emotions ranging from hate and anger to hope and confusion as one of the decentralised worlds biggest brand names Terra (Luna) Network began to tumble bringing the entire sector down with it.
The market hasn't shown signs of recovery which is leading some experts to say that Crypto is in a recession and will take some time to bounce back from this dip. Perhaps a lot longer than the crypto winter of 2017.
Despite the hardships faced by many there are a large cohort of investors and Lunatics that still hold on hope for a revival of the Terra (Luna) Network. For many this is going to be the only way they get to remake the money lost if they can. In order for people to regain funds it will heavily rely on new investors or the same ones pumping more money into the ecosystem through the many various projects and protocols preparing to relaunch.
Questions are still being asked on IF they will be able to pull it off but the answer lays in the broader crypto market with many things still being left unanswered in the Terra 2 rebirth.
What's to become of Anchor Protocol?
Terra (Luna) Network which is now known as Terra Classic isn't brining across a algorithmic stable coin, UST will remain a distant failed project, although there is nothing to say it won't regain its peg in time. But for the meantime there is no clear communication on if Anchor Protocol will be migrating to Terra 2.
If it does what will its role be as it still does have a use case as prior to the crash we saw the implementation of bridged assets which could be used as collateral to borrow UST and earn an APY.
There is nothing stopping a Terra 2 version from still enabling the same bridge but replacing UST with Luna or another imported stable coin already in circulation.
No clear map for the future
One thing that all crypto projects require to provide certainty and accountability is the production of a Whitepaper or some form of business plan. Terra 2 does not currently have a white paper or even a litepaper.
Other than rebooting Terra Classic as a means for investors to attempt to regain their losses it doesn't have a clear direction other than another Proof of Stake Blockchain with low fees.
In fact it doesn't actually have any new features and will be one of the most restrictive to code on and will not be able to compete with Binance and their decentralised network.
Yes they will have a number of developers returning to the fold but many of the protocols and projects on Terra classic were still maturing and many, without the stable coin will not have the same business cases. Due to this we anticipate initial Luna investment to be quite low.
Frankenstein Lives!
As of right now unless notified by TerraForm Labs, Terra 2 is live and as of the very first block creation many addresses were whitelisted to receive air dopped genisis tokens.
As someone who heavily invested in Terra and got wiped to below 0 I am interested in how this all plays out. Many smaller players will have unlocked tokens which they can sell immediately for fiat or other tokens. I on the other hand will have to wait quite some time which could be a blessing or a curse.
I have already been left holding the bag due to staking so being left holding it again is not something I want to do.
It's not all bad if people dump their tokens right away as it is very unlikely these participants will be exiting the Decentralised Finance world, instead they will most likely stimulate the broader crypto market with funds being used in other blockchains (keep an eye on Ethereum and Bitcoin).
For the most part none of us know how much the tokens will be valued at as the Terra Money update only focused on the Genesis launch which will occur on 28 May 2022 and the break down of the airdrops.
No one knows what will come next and we have seen other projects take significant hits when hacking occurred and the current market is still strong with rug pulls which indicates peoples willingness to purchase a token without any background research.
Given That Terra Classic went from $US.30c to breaking $US100 in a year the track record is there to provide market confidence. But the question on everyone's lips is Can Do Kwon do it again and has he learned from his mistakes? We will have to wait and see.
Will you be investing in Terra 2? let us know in the comments section below and what you think will occur over the coming months
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