A recent Bloomberg report has some insights into Terra’s new Blockchain. Based on this report, four leading market watchers discuss Terra’s future. Observers consider Terra’s comeback with the new Blockchain to be a pathetic undertaking at best. Also, market watchers do not see the altcoin project as unlikely to survive the decline.
What is the purpose of Terra’s new altcoin project?
Terra (LUNA), as it is known, was born from the ashes without the algorithmic stablecoin UST, which lost the dollar peg and led to its collapse. Within this framework, Bloomberg presented a report on Terra’s return with LUNA 2.0. Here are the comments from leading crypto experts who believe Terra’s comeback is bleak. A few issues regarding Do Kwon’s role and governance in the new token act as discouraging factors.
Mati Greenspan is the founder and CEO of Quantum Economics, a crypto analytics platform. “LUNA 2.0 has no future,” says Greenspan. Greenspan says LUNA 2.0 is designed as a tool for investors who lost funds in the Terra crash and have no way to recoup their losses. Greenspan states:
LUNA 2.0 was never designed to survive.
Khaalelulla Baig: There is no future for this altcoin anymore!
Riyad Carrey, research analyst at Kaiko, shared her views on de Terra. Carrey argues that the decline of LUNA 2.0 is due to competition with Ethereum alternatives. The projects mentioned here as Ethereum alternatives are Solana and Avalanche. On the other hand, these projects do not have a failing token load. The remarkable loss is the loss of the algorithmic stablecoin UST.
Therefore, LUNA 2.0 has no sister token. Hence, it lacks a feature that was fundamental to the previous Blockchain LUNA Classic (LUNC). This makes it difficult for the token to compete with others such as SOL, AVAX, and ETH.
Terraform Labs CEO and founder of sister tokens LUNC (formerly LUNA) and UST, Do Kwon has lost credibility. That’s why CoinBasket founder and CEO Khaalelulla Baig believes LUNA 2.0 holders are willing to drop the token. Baig makes the following claim:
Luna has no future. Building the new Luna within the existing community will no longer make sense.
LUNA 2.0 price continues to drop
As we have reported as cryptokoin.com , the price of LUNA 2.0 is one witnessed a double-digit drop overnight. The Terra token has experienced a steady decline over the past few weeks. In addition, the LUNA 2.0 price is 85.9% below its all-time high.
Analysts evaluated the LUNA 2.0 price trend. Analysts predict further declines in the Terra token. However, Terra expected LUNA prices to rise with the launch of the new Blockchain. Also, the project team wanted to help investors recoup their losses. However, the altcoin has experienced price bearish pressure. LUNA continued to lose value after a descending triangle on the chart. LUNA price dropped below the support at $3.3 and continues to lose market value.
