The Terra LUNA project was created by Terraform Labs, which was co-founded in 2018 by South Korean entrepreneurs Do Kwon and Daniel Shin. However, with the hard fork of the project after the crisis on the USTC side in May 2022, the blockchain was brought back to life with Terra 2.0.
The Terra blockchain allows its users to instantly create, accumulate, trade or exchange Terra stablecoins.
The Terra project consisted of two main cryptocurrencies, Terra coins and LUNA coin. The largest stable coin on Terra was UST. LUNA coin experienced a serious crisis with the deterioration of the price balance on the UST side in May 2022, and this event shook the entire cryptocurrency market.
LUNA 2.0 will basically be the new token of the Terra blockchain, which aims to save the Terra Luna ecosystem after the collapse of the dollar-denominated stablecoin called UST.
Among the reasons for the collapse; mass withdrawals days before the crash, investors’ concerns about cryptocurrencies, and the drop in the price of Bitcoin. During the collapse, the UST was burned into the LUNA. This has caused the price of LUNA to drop due to increased supply.
After these events, the founders of the project went to fork and created a new blockchain with Terra 2.0. Forking has been supported by many cryptocurrency platforms and has become active again with the new blockchain. The cryptocurrency has been delisted by most exchanges but is still available on a few exchanges. The name isn’t just Luna. The name of the collapsed old Terra Blockchain network will be changed to Terra Classic. The name of the new Blockchain network will be Terra. In the Terra Classic network, LUNAs will be referred to as LUNC (Luna Classic) from now on, while the new tokens will be called LUNA.
