Resurrected Luna Already Off To A Bad Start

A new version of the collapsed Luna cryptocurrency is already live on major exchanges – and it’s gotten off to a bad start.

Last week, supporters of the Terra blockchain project voted to revive Luna but not terraUSD, a so-called “stablecoin” that plunged below its intended peg to the dollar, causing panic in the crypto market.

TerraUSD, or UST, is what’s known as an algorithmic stablecoin. It relied on code and a sister token, luna, to maintain a $1 value. But as digital currency prices fell, investors fled the stablecoin, sending UST tumbling – and taking Luna down with it.

At its height, the old luna – now known as “luna classic” – had a circulating supply of over $40 billion.

Now, Luna has a new iteration, which investors – including those using trading bots like eToro – are calling Terra 2.0. It is already trading on exchanges including Bybit, Kucoin and Huobi. Binance, the world’s largest crypto exchange, says it will list luna on Tuesday.

Its launch has not gone well

After reaching a peak of $19.53 on Saturday, luna dropped as low as $4.39 just hours later, according to CoinMarketCap data. It has since settled at a price of around $5.90.

Analysts are deeply skeptical about the chances of Terra’s revived blockchain being a success. It will have to compete with a host of other so-called “Layer 1” networks – the infrastructure that underpins cryptocurrencies like ethereum, solana and cardano.

Terra is distributing Luna tokens through what’s called an “airdrop.” Most will go to those who held luna classic and UST before their collapse, in an effort to compensate investors.

But many investors burned by the debacle are unlikely to trust Terra a second time, experts say. Vijay Ayyar, head of international at crypto exchange Luno, said there’s been a “massive loss in confidence” in the project.

What Cryptocurrency Should Investors Consider Buying?

Knowing what crypto to buy is tough due to the volatility of the market. It’s not just a case of which crypto you like, but which has the best roadmap, where the volume is, and in which direction the market is headed.

On top of the list is the EverGrow coin. The EverGrow Coin BUSD reflections have remained strong and stable during the crypto crash. While TerraUSD fell out of the crypto top 20, BUSD jumped up to 7th place and emerged as the most secure stablecoin pegged to the US dollar. To date EverGrow Coin has paid over $37 million in BUSD to investors with an 8% reflection tax on all buy/sell orders.

Following closely is the fast rising BNB BNB has emerged from the crypto crash smelling of roses.

BNB has grown over 10% in price in the past week – meanwhile Bitcoin, XRP, Cardano, Solana, Dogecoin, Shiba Inu, AVAX and Polkadot have all seen losses. 

BNB is also up 3% in the past day as it continues to grow in value. Behind BNB’s growth is of course the Binance ecosystem, which houses the largest crypto trading platform in the world by daily volume.

Binance is proving to be one of the most secure crypto networks in the industry, and with BNB at the heart of it it’s likely to be a good buy in 2022. The current BNB price is $332 and is up from a low of $227 during the crypto crash.