It’s not just the price of Terra that’s getting attention. Mark Twain, who is frequently misquoted, is also behind the recent fundraising round. The new Terra 2.0 will be a decentralized algorithmic stablecoin that will coexist with its predecessor, Terra-Luna. And it will be backed by bitcoin. That’s good news for cryptocurrency users, but what about investors?
Terra 2.0 will launch on May 28, 6 am UTC
As a result of the ongoing discussions surrounding cryptocurrencies and crypto-assets, Terra 2.0 has finally been announced. While the mainnet launch is not far away, the new Terra chain will be launching at a time that will be most convenient for you. The new Terra blockchain is designed to restore the ecosystem to its previous glory, following the implosion of Terra’s algorithmic stablecoin, UST. After Terra’s implosion, its developer, Terraform Labs, proposed a new chain and deployed it in days. Since then, several applications have already migrated to the new chain.
It will be a decentralized algorithmic stablecoin
While Lunatics are calling Terra’s downfall an “attack,” it seems like the underlying problem was designed into the project from the start. The balance between Terra Token was prone to collapse when a large group of people pulled their money out at once. That made Terra an unwise investment for retail investors and sparked a chain reaction that led to the company’s demise.
It will co-exist with Terra-Luna token
After the collapse of the Terra-Luna ecosystem, Binance and the Terra-Luna team are coordinating to create the LUNA 2.0. LUNA 2.0 is meant to resurrect the ecosystem. The current Terra-Luna ecosystem is a disaster, with investors losing $40 billion. LUNA 2.0 would not share the same history as its predecessor, but instead would begin with block 0 and abandon the old chain’s history.
It will be backed by bitcoin
The Terra creator has bought $3.3 billion worth of Bitcoin. The Luna Foundation Guard, which controls the Terra project, said it intends to repurchase the borrowed Bitcoins once market conditions improve. However, some skeptics believe Terra is a scam. A recent report by Coindesk states that it could lose up to $100 million in a few years. That’s a big risk to the project and its future.
It will be regulated
It looks like Terra will be regulated as the failed crypto projects tries a new p. Its token design is the key reason for its downfall. The coin has a very low value today compared to fiat, and it is likely that regulators will target Terra tokens. However, the rebirth of Luna is exciting for investors. The new tokens will be airdropped to existing UST holders, who have been unable to cash out their UST tokens.