Will Luna rise again, we explore some interesting developments
Good morning Lions I trust you are safe and well and roaring into action.
Another day and it is looking like TerraForm Labs finally has some sound direction but will it be enough or is the community still hurt?
In yesterday's article Authorities Move in on TerraForm Labs as Do Kwon sets out the future we announced how Do Kwon will be forking the network and broke down the upcoming airdrop to the Terra 2.0 network.
Don't get too excited, these tokens will be vested for 2 to 4 years.
The question that has the entire sector asking is Will Terra Rise Again?
This is a good question but we are going to side with Terra and say yes, why? Well a lot of VC's invested heavilty in the project andthey lost a lot of money in the collapse. UST was also in the process of going mainstream so it's collapse came at a good time (if there ever is one).
Imagine had UST been accepted by murchants as mainstream payments and the collapse occurred, this would have left a lot more people out in the cold with businesses collapsing. We have to remember that UST was still being widely used in East Asia with many people undertaking regular purchases through payment systems.
Luna isn't the first blockchain to experience significant set backs with many blockchains coming under attack and hacks and reemerging and regaining trust. Thor Chain is one such network and they have recently thrown their support behind Terra and decided that they will continue to validate the old network also.
Someone else also thinks that the former chain which will be known as Luna Classic is also going to do something as they have picked up 1.8 Billion Luna tokens as well as a large quantity of UST and Anchor tokens. That is a significant risk to take in a failing project, unless you knew something?
Crypto Fall Out Across the Cosmos
No blockchain has been hit harder than the Cosmos with the fall out of UST as many of its trading pairs we Luna and UST. As Luna began to fall in price and UST depeg it sent the Cosmos into what some are now calling a Cryptocession. It appears that the Cosmos have entered a recession which may take some time to climb out of.
A recent proposal on Atom has successfully passed at 99% drawing out an overwhelming majority of voters (the best I have seen to date) to remove Luna and UST pairs. The strong turn out indicates that a lot of people dislike Luna.
Will it rise?
No one can answer that question but given the heavy institutional losses and recent activity I think the new fork will regin market confidence and with the large amount of VC they will be back again.
What are your thoughts, will Terra 2.0 rise from the Ashes? if it does it will be one of cryptos greatest sucess stories.
▶️ 3Speak
