The recovery from the collapse of Terraform Labs' stablecoin TerraUSD (UST) and its native token Terra (LUNA) got off to a rocky start, with LUNA 2.0 seeing a 67 percent market correction.
Since its relaunch, LUNA 2.0 has continued to fall and is now down -84.74% from a high of $19.53 after Terra’s ecosystem was reactivated with the coin’s airdrop, according to CoinMarketCap data.
Currently, LUNA 2.0 is trading at $3.03, down 12.3% in the last 24 hours with a total market worth of $790 million.
Terraform Labs successfully distributed the LUNA 2.0 tokens to investors who held LUNA Classic and TerraUSD
The token were airdropped on May 28, with a maximum circulating supply capped at one billion.
Although there are a lot of possible explanations for the price drop of LUNA 2.0, including the overall performance of the crypto market and a loss of trust in the new ecosystem and its inventor, many people consider it to be a factor.
Because FatMan has declared himself an insider with Terra, speculations about Do Kwon's role in the establishment of the new Terra network have circulated among the Twitter community.
FatMan said that Do Kwon and Terraform Labs had misled about the fact that Terra 2 was owned by the community.
Terra’s collapse notably pushed South Korea to form a committee focusing on strict crypto regulation.