Terra appears to be hopeful about success of this new chain
According to Official Terra Twitter handle, “Block 1 of the brand new Terra blockchain was officially produced at 06:00 UTC on May 28, 2022.” It says eligible LUNA airdrop holders can now view their wallet balances on the new channel.
Celebrating the milestone, Terra wrote, “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.”
While Terra seems hopeful for the success of this new channel, few share its optimism.
As U.Today previously reported, billionaire investor Mark Cuban poured cold water on the new Terra blockchain ahead of its launch. Efforts to restore the failed blockchain have also been slammed by Billy Markus, the Dogecoin creator, who claims it will only attract “dumb gamblers.”
Here’s what the market thinks
BitGo CEO Mike Belshe wondered if Terra 2.0 would be able to surpass the first version of the project.
“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.
The new Terra initiative, according to Hartmann, is worth watching as it will likely start on the ground floor, but it will also require a lot of work from the founders as they no longer have billion dollar market valuations. of dollars. “So it’s something worth watching,” Hartman concludes, “but maybe the real realization — if it ever happens — would be in a year or two, definitely not this month. .”
Regulatory barriers, in addition to the general worries raised by many market participants, loom. Stablecoins have been on regulators’ minds for reasons such as a lack of transparency in stablecoin trade and the reserves underpinning them, as well as the reliance on them by market players to enable trade in other crypto protocols.
The Terra ecosystem collapsed in May following the depegging of Terra UST. Following a sharp drop in price, LUNA has completely lost all of its value.
