LUNA2 is bursting at the seams: users are dropping new coins

Terra (LUNA) Project until recently, it had a capitalization of $ 40 billion, and its UST stablecoin was among the top three. Since a large team of developers worked on the project, the brand was recognizable, and the community was cohesive, the validators decided to restart Terra. However, even former investors are less and less confident in success, and new claims are emerging against the head of Do Kwon.

Most of the participants and independent experts called on the company to buy out and burn LUNA to restore value. But the validators voted to create a new branch from the genesis block, rename the old coin to Luna Classic (LUNC) and refuse to support the stablecoin.

New LUNA or LUNA2 are to be distributed to LUNC and UST holders based on two snapshots. At the first stage, investors will receive 30% of the fixed volume, and subsequent funds — in a period of six months to four years.

A number of cryptocurrency exchanges supported the emergence of a new branch, and the price of the coin on the day of listing reached $ 12. This was the last positive news for the project. After the distribution, most investors decided that a bird in the hand is better than a crane in the sky, and it is worth compensating for at least part of their losses.

So, only yesterday out of $4 million of the trading volume, $2.5 million were positions for sale. The dominance of bears is also indicated by the financing rate, which remains deeply negative.

At the same time, the pressure from their side continues to increase.

Adding fuel to the fire is the accusation against Do Kwon about manipulating numbers when voting validators. According to a network participant, Do Kwon used a shadow wallet to win the option with the appearance of a new branch. In accordance with the distribution program, he received LUNA2 in the amount of at least 42 million or $126 million at current prices. In this case, Do Kwon himself may turn out to be one of the key bears in the market.

The presence of LUNA2 at Do Kwon contradicts the previously released statement that the parent company Terraformlabs (TFL) does not own LUNA2, and the management of Terra is now completely concentrated in the hands of the community.

In addition to crypto users, the investigation is being conducted by the South Korean police. They already have one suspect from TFL who tried to withdraw funds from the company’s crypto fund to his own wallet. At the moment, the transfer is frozen, but the amount and the name of the suspect are not disclosed in the interests of the investigation. Before the collapse of Terra, the crypto fund totaled $3 billion.

The appearance of new charges does not add to the investment attractiveness of Terra’s already shaken reputation. Probably, LUNA2, following its predecessor, will continue to update anti-records.