Investor interest in the upcoming relaunch of the Terra (LUNA-USD) blockchain is red hot, especially with a LUNA 2.0 airdrop promising to spark engagement.
Terra developers told the community early this morning that the relaunch will go live tomorrow. This Saturday launch, a day later than expected, will come alongside an airdrop of new LUNA tokens. Importantly, the airdrop is part of a plan to revive this cryptocurrency’s ecosystem.
The old tokens which associated with Terra’s algorithmic stablecoin ecosystem have since been rebranded. Terra’s original LUNA become LUNC, with TerraUSD’s UST now taking the USTC ticker. They will now trade as Terra Classic and TerraClassicUSD.
Let’s dive into what this airdrop and relaunch mean for interested crypto investors.
Is the LUNA 2.0 Airdrop a Buying Opportunity?
Terra’s developer team has sought to recreate the strong and vibrant community which was previously held on the original Terra blockchain. Through focusing on the other projects that were built on top of Terra, the hope is to move forward and create real-world utility, without the stigma of the stablecoin project that collapsed.
The LUNA 2.0 airdrop is another way to help the ecosystem move forward. According to the plans, eligible investors who held Terra ecosystem tokens will receive the new LUNA in their crypto wallets. What they receive will factor in how much they held before, how long they held it, and what exchanges and wallets they are working with. The goal is to get investors excited about Terra 2.0 and set the network off on a strong start.
Personally, that seems like a tall task. And while some investors may have a short memory, such an incredible loss of capital for investors is likely to limit this network’s uptake, at least initially.
I guess we’ll see. There was a lot to like about Terra’s old blockchain (even outside its UST component).
How this airdrop performs will be a key factor investors will want to watch. In some ways, the relaunch of Terra could say a lot about how vibrant the crypto community really is. Thus, this could be a pivotal point for investors to watch, at least in the near term.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.