Terra launches LUNA USD, airdrop of new LUNA 2.0

Terra launches LUNA USD, airdrop of new LUNA 2.0

Terra LUNA USD launched its new blockchain today, followed by the airdrop of new LUNA 2.0 token to users as part of a wider plan for revival.

The holders who are eligible for the LUNA airdrop can now view their wallet balances on the new chain.

Today marks the beginning of a new token for the Terra community, one in which our potential knows no bounds and our collective creativity can flourish. Popular applications are expected to migrate to the new blockchain, while the original blockchain will be known as Terra Classic. The yet-to- be-launched project was dismissed by billionaire Mark Cuban, who told Fortune he wouldn't put money into Luna 2.0.

Felix Hartmann, managing partner of Hartmann Capital, told CNBC that it would take a lot of time to rebuild trust with investors and builders.

The idea of algorithmic stable coins is dead. There are other ones that are not as big as UST. They're all in a state of failure to maintain the peg right now, said Omid Malekan, a Columbia Business School veteran and adjunct professor.

On Thursday, a governance vote on Terra's proposal 1747 to burn 1.388 billion TerraUSD UST USD was passed. The move reduced UST's supply by 11% of its current supply of 11.28 billion.

The Terra ecosystem collapsed in May after the depegging of TerraUSD.

The price check: The Luna 2.0 token was trading at $5.23 on Saturday afternoon, down 72.42% since it was launched earlier in the day. The token was at a high of $19.54 earlier in the day.