- The original Terra chain has been rebranded as Terra Classic, while a new chain has been created with the existing name Terra and made available for trading from May 28 onward. Due to the de-pegging of the former chain, LUNA is witnessing extreme volatility.
Terra 2.0: Do Kwon’s Terraform Labs launched its new blockchain on Saturday. The original Terra chain has been rebranded as Terra Classic, while a new chain has been created with the existing name Terra and made available for trading from today onward. Due to the de-pegging of the former chain, LUNA is witnessing extreme volatility. Also, steep selloff in broader crypto markets further added to woes. Terra coins were currently in deep red, although, the new coin LUNA did reach to almost $20-mark.
The CoinMarketCap has notified investors on the website saying, “due to the de-pegging of UST, LUNA is experiencing extreme volatility. Please proceed with caution. The Terra blockchain was also halted.”
As per the exchange, Terra Classic (LUNC) traded currently at around $0.0000997 down by 26.55%. It has a market cap of $653.93 million. It needs to be noted that, Terra Classic is the same original chain, however, rebranded.
Further, the new chain Terra (Luna) is trading at $4.21 nosediving by 77.03%. This would be its first day of trading. The coin has dropped to as low as $3.63 and even touched its highest range of $19.54. There is no comparison of Terra from the previous day.
However, Terra’s market cap is at $883.76 million at the current market price – far better than its sister Terra Classic. Terra Luna’s fully diluted market cap stood around $4.21 billion so far on the first day of trading.
Kwon’s proposal 1623 received approval earlier this week. Under the Terra Ecosystem Revival plan, the original chain will still function but is re-branded as Terra Classic.
Under the rebranded Terra Classic, the original cosmos chain will still run, however, with market swaps (mint/burn function) disabled. Further, all balances will continue to be the same. Luna has become Luna Classic (LUNC). Also, Terra stablecoins (UST, KRT, EUT, etc.) has been renamed Terra Classic stablecoins (USTC, KRTC, EUTC, etc.).
USTC is currently performing at $0.02616 lower by 24.32%. While its market cap is around $294.52 million. Notably, the UST has remained de-pegged from the US dollar since 9th May 2022, as per CoinMarketCap.
Furthermore, the new chain Terra has assumed all Terra branding assets. Notably, Terra is also a cosmos chain, however, will not have the treasury, oracle, or market modules of the original chain. The new chain’s native mining token is called Luna. Also, Terra stablecoins (UST, KRT, EUT, etc.) will not be included in the new chain.
Initially, the supply of Luna at the genesis of the new Terra chain is set at around 1 billion coins. Further, the mint module will release new coins every block as staking rewards at a default rate of around 7% per annum.
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