Terra Launches New Blockchain; Luna 2.0 Drops Over 70% On First Day Of Release

Terra LUNA/USD launched its new blockchain today, followed by an airdrop of new LUNA 2.0 tokens to users as part of a broader plan for revival. 

The holders eligible for the LUNA airdrop can now view their wallet balances on the new chain.

New Token Launched: Terra wrote on Twitter, "Today marks the beginning of the next chapter for the Terra community; one in which our potential knows no bounds and our collective creativity can flourish."

Popular applications are expected to migrate to the new blockchain, while the original blockchain will be known as "Terra Classic." 

Also Read: Terra's Do Kwon 'Heartbroken' Over UST Collapse, Doge's Billy Markus Tells Him To Leave The Industry

Skepticism Remains: The Crypto market is still skeptical about LUNA 2.0. Earlier, billionaire Mark Cuban told Fortune that he wouldn't put money into Luna 2.0, dismissing the yet-to-be-launched project early on.

"There's a big question mark. Whether that will be successful will take a lot of rebuilding trust with investors and builders," Felix Hartmann, managing partner of Hartmann Capital, told CNBC.

"Algorithmic stable coins as an idea are dead. There are other ones out there, not as big as UST. They're all in some state of failure to maintain the peg right now," said Omid Malekan, a crypto industry veteran and adjunct professor at Columbia Business School. 

Earlier this week, on Thursday, a governance vote on Terra's proposal 1747 to burn 1.388 billion TerraUSD UST/USD was passed. The move reduced UST's supply by some 11% of its current supply of 11.28 billion.

The Terra ecosystem collapsed in May following TerraUSD depegging. 

Price Check: The Luna 2.0 token was trading at $5.23 on Saturday afternoon, down 72.42% since being launched earlier in the day. The token reached a high of $19.54 earlier in the day.