Terra Luna’s price collapse has estimated cost of $40B, shockwave on global crypto market sees over $1T evaporating
A new blockchain called Luna 2.0 is set to launch on Friday to replace the current Terra Luna crypto network after the latter’s collapse erased billions of dollars to hurt millions of investors.
Terra Daily, which provides daily news about the network, announced Wednesday on its official Twitter account that a proposal “to rename the existing network Terra Classic (LUNC), and rebirth a new Terra blockchain (LUNA) has officially passed!”
Do Kwon, the creator of the network and CEO of TerraForm Labs, also said on Twitter that many cryptocurrency exchanges will support the new blockchain Luna 2.0, such as gate.io, Bitfinex, FTX, Huobi, and Bitrue.
The price of cryptocurrency Terra Luna plummeted in recent weeks, trading at $0.0001578 around 0820 GMT on Thursday,from $92.31 a month ago.
Its sibling UST, which was initially designed to be pegged one-to-one with the US dollar, was at $0.09079 at the time.
Terra Luna’s price collapse is estimated to have caused crypto investors to lose around $40 billion, also sending a shockwave across the global crypto market that saw more than $1 trillion evaporating in just six weeks.