Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
A number of crypto exchanges have announced that they would support or probably list the new Terra on their platforms.
Terra co-founder and chief executive Do Kwon’s contrived scheme to revive battered crypto Terra (LUNA) has received support from several crypto exchanges. Within the last 12 hours, Bitfinex, Bitrue, and Huobi all took to Twitter to express their votes of confidence for new versions of Terra (LUNA).
So far, Do Kwon has retweeted the supportive posts from each exchange as strong anticipatory evidence for the new crypto. In addition, the South Korean crypto developer also retweeted a post from FTX, which was subsequently deleted.
According to a recent tweet, Binance is in close collaboration with the Terra development team on the latter’s recovery plan. However, the Changpeng ‘CZ’ Zhao-led crypto exchange did not officially commit to supporting the launch of Terra 2.0. The complete Twitter statement read:
“The Terra community just passed a vote to ‘Rebirth Terra Network’. We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment. Stay tuned for further updates.”
According to the Terra restructure proposal, which garnered a 65.5% voting approval, the new Terra blockchain will start running a coin using the existing LUNA name and ticker. However, this version would not include the UST stablecoin. Meanwhile, the original Terra will split off to become Terra Classic, with the corresponding original LUNA coin renamed to Luna Classic or LUNC.
The new LUNA will be distributed to previous holders of its original variant and UST via airdrop on Thursday. Terra is looking to create the new blockchain on May 27.
Amid Crypto Exchanges Support, New Terra Touted to Surge by Advocates
As the goodwill gesture continues to pour in from crypto exchanges, other advocates have also commented. Many already believe that the rebirthed crypto will surge to the moon. However, this may simply be due to a time-tested trend in the speculatory world of assets that induces “loss chasing”. More popular in gambling, loss chasing is a situation where investors amplify their initial investment efforts to recoup prior losses.
Millions of investors saw their LUNA holdings crash to nothing a little over two weeks ago. This was triggered by the implosion of the platform’s algorithmic and controversial stablecoin UST. The total market value of LUNA wiped out due to the crash stands at approximately $40 billion.
Among those hit hard is Galaxy Digital’s Mike Novogratz. The billionaire CEO of the technology-driven financial services and investment management firm recently issued a letter to shareholders where he touched on the LUNA crash. According to Novogratz, investor confidence in crypto and DeFi has suffered a massive setback. In addition, the American investor shared a painful personal perspective in the letter. Before the crash, Novogratz’s bullishness on LUNA saw him opt to get a tattoo of the ill-fated crypto back in January this year. Now he says, “My tattoo will be a constant reminder that venture investing requires humility.”