- Terra launched a new edition of its failed luna cryptocurrency, but it's off to a slow start.
- The new token, which plunged 97% earlier this month, has hit lows of $3 since relaunching.
- It hit heights of $19.53 on Saturday, but confidence in the cryptocurrency seems lacking.
Terra launched a new version of its failed luna token — and it's already underperforming.
The relaunch comes as part of founder Do Kwon's revival plan for the Terra ecosystem, after an intense crash of its stablecoin terraUSD and its sister token luna. The terra USD (UST) and luna projects, headed by Terraform Labs, plunged with UST losing its peg to the dollar and luna tanking 97%.
The crash ultimately fed a cryptocurrency bloodbath that saw major tokens like bitcoin, ether, cardano, solana, and dogecoin crater to astonishing lows.
The sell-off was mainly down to investors' flight from high-risk assets as the Federal Reserve tightens its grip on monetary policy.
Scrambling to rescue the Terra system, Kwon announced he would create a new blockchain for the luna token, leaving terraUSD in the grave. The plan called for a hard fork of the existing Terra blockchain and dubs the new token as "Luna" (LUNA) – the main staking asset of the chain.
The older chain will be classed as "Terra classic" with its token renamed "luna classic (LUNC)."
Since hitting highs of $19.53 on the day of its launch, however, luna sunk as low as $3.93, according to CoinMarketCap data. As of 5:55 am ET, luna trades at around $8.70.
According to the new plan, Terra is issuing luna tokens via an "airdrop" and said it would distribute as many as 1 billion tokens.
"The Terra ecosystem and its community are worth preserving," Kwon said in the proposals.
Though Kwon is ambitious about the Terra ecosystem, other leading figures in the industry have cast doubt over crypto and stablecoins. The CEO of Circle, Jeremy Allaire, said Terra's recent implosion has in fact given legislators the impetus to swiftly pass crypto regulation.