LUNA 2.0; The Coin Of Gamblers.

By CryptoChad | CryptoNews; The latest about the cryptoverse | 29 May 2022

By the time I was writing the article LUNA had already fallen to $6 from the initial price of $19. Why LUNA 2.0 is a coin for gamblers and what can we conclude about the project?

What happened with Terra and the re-launch?

The Terra network collapsed after UST lost its peg to the USD. Changes mentioned in proposal 1623 gave birth to a new blockchain and to the re-launch of Terra. The new LUNA distribution is based on "pre-attack" and "post-attack" snapshots of the original Terra blockchain, with new tokens being distributed to users who had stakes in the chain before to the meltdown.

Multiple crypto exchanges have expressed support for Do Kwon's initiative to revive the blockchain, most notably including Binance, Bybit, Crypto.com, Kraken, KuCoin, MEXC, OKX among others. Some of them have already listed LUNA on their markets.

According to the documentation, there will be a distribution of 1 billion LUNA tokens in the system. The community pool will account for 30% of the total supply while LUNA and UST holders before the de-peg will share 45% of the supply (35% for LUNA and 10% for aUST or AnchorUST). The remaining 25% is reserved for post-crash holders (10% for LUNA and 15% for UST). Noticeably, Terra continues to refer to the crash as an "attack". The new blockchain has a different chain ID, which is Phoenix-1.

On 28 May Terra stated that the first block of the new blockchain has been produced after an 1-day delay.

Terraform Labs said on Friday that it had captured the blockchain's post-attack image and was "building a genesis file for the launch." As of press time, LUNA is trading at $5.91 on Gate.io, which is the most active exchange.

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Controversies.

My answer to why I don't trust Terra 2.0 is simple; accountability. Do Kwon's arrogance and incapability are visible in his statements about the Terra collapse, not to mention his former controversial comments on various issues. Arrogance remains a silent killer in every aspect of our life and in the case of Terra, it led to a disaster.

Billy Markus, the creator of Dogecoin, summed it up in his tweet, from which today's article is inspired (I know it's ironic coming from the founder of Dogecoin but his tweet is still quite accurate). There is a serious problem when people can't understand the difference between investing and gambling and this deprives cryptocurrencies of legitimacy and regard among others.

We can now proceed to the actual price indicators. As of today, LUNA has already lost over 60% of its value since it was listed on Bybit. This led Binance and other exchanges to delay the listing of trading pairs.

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TradingView chart showing LUNA/USDT pair with additional indicators (MACD, OBV), published on 29 May 2022.

However, LUNA is slowly bouncing from the first crash and its price might escalate as shown in the MACD and OBV indicators. In the first indicator, the blue line (MACD) is above the orange line (signal) signaling a potential increase (even if small) and in terms of OBV, the volume is showing signs of recovery from yesterday's lows. Bear in mind that the data featured are from the last months (this was the best graph I could find) and it's still too early to open any positions so we need some weeks before using indicators for research.

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TradingView chart showing LUNA/USDT pair with additional indicators (MACD, OBV), published on 29 May 2022.

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Conclusion

Terra has already failed its investors and the launch of the new blockchain is a great project for gamblers. I don't see any reason to invest in LUNA and the fact that mainstream exchanges already embraced the coin says a lot about their lack of accountability. The market is already quite volatile and nothing can guarantee us that there can't be a similar crash again, either in a few months or years.

That's all I had for today. I hope you enjoyed the article and appreciated the effort. Are you investing in LUNA and if yes why? I personally stated my objection but it's up to you to decide on what to do with your money as my opinion is something subjective. Nevertheless, it's quite hard to trust Do Kwon, especially after the loss of vast amounts and his lack of credible justification for the crash. Generally speaking, it's better to adopt a conservative approach and hold the current balances instead of spending money we can't lose.

Crypto means freedom and responsibility. Invest wisely!