Following the brutal collapse of Terraform Labs, Luna Token and UST Token, the community and known figures in the crypto space were quite unhappy with founder Do-Kwon. As he believed, the crisis could have been handled in a better way and the extreme consequences done by some could have been prevented.
While most of the community still seeks to burn the additional mined LUNA coin, the founders went ahead with the revival plan which includes a genesis chain with new tokens again called LUNA. The new coins will be airdropped in installments to ease selling pressure. However, it appears that a large part of the community has decided to just ‘dump’ new LUNA coins every time they get it.
Why are traders not happy with the Terra revival plan?
- Luna Foundation Gaur LUNA. holds the majority of tokens (about 50% as many believe) and therefore tokens may not be fully decentralized as claimed.
- Traders fail to develop confidence in the fundamentals of the token and Luna Coin and only ‘dump crypto gambler‘ Luna can jump into business
- On the other hand, the new scheme has completely phased out the stablecoin UST and hence has been a major concern for the community. As he believes, LUNA cannot thrive without UST alone.
It is a known fact that the prices of LUNA and UST were correlated with each other and due to UST only, LUNA prices manage to range higher to hit the 3-digit figures in the short term. Hence, with uncertainty looming around the asset, many traders are very unsure about the upcoming progress of the coin. Furthermore, the lawsuit filed by investors could also affect the price of LUNA in the future as happened on XRP price due to the ongoing Ripple vs. SEC case.