Terra blockchain got a restart from LUNA 2.0 airdrop. But LUNA 2.0 price has plummeted to new lows, with more than 20% drop in its price. At the moment, Terra (LUNA) is trading at $3.44 down by 20.28%
Reason behind LUNA 2.0 price drop
Even though the instability of the entire crypto market has impacted the decline, the intensity of FUD around the new currency is still worth watching. There are rumors regarding Do Kwon’s participation in the creation of the new Terra Network. This therefore paved the way for the loss of confidence in the new ecosystem.
The rumors surfaced after FatMan, a Terra insider, claimed that Kwon and Terraform Labs lied about the new network being community-owned. He alleged, “TFL owns 42 million LUNA, valued over $200 million,”
He further stated that Kwon was involved in the relaunch and used his LUNA assets to vote in favor of the hard fork. Kwon let this happen despite community requests that he burn the tokens.
Although none of these accusations have been proven, they have created enough doubt to induce a large sell-off of the coin. Do Kwon’s choice to make his Twitter account private may have contributed to the ecosystem’s anxieties.
Additionally, law enforcement officials in South Korea are investigating a Terraform Labs employee for alleged misuse of the company’s Bitcoin. Additionally, officials want to understand if Do Kwon was aware of the planned collision.
The Terra project’s LUNA 2.0 price isn’t the only one that has suffered as a result of these rumors. LUNA Classic has so far shed 100% of its value. LUNA Classic price has dropped another 11.3% in the past 24 hours, eliminating any possibility of a comeback.
