Terra Goes Live With New Blockchain, LUNA Airdrop

After the crash of Terra earlier this month Terra’s new blockchain has successfully launched. The blockchain went live with a LUNA airdrop

Terra Goes Live With New Blockchain, LUNA Airdrop
Terra Goes Live With New Blockchain, LUNA Airdrop

This morning, new LUNA tokens were given away for free through the blockchain.

The new blockchain for Terra is now live.

Finally Here!

Today, Terraform Labs confirmed on Twitter that the new network had started making blocks. It started at 6:00 UTC, and people who already owned LUNA or UST got free tokens.

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 28, 2022

The new blockchain is an attempt to save what’s left of the Terra community after the shocking collapse of the blockchain earlier this month.

The algorithmic stablecoin UST from Terra was first unlinked from the dollar on May 8, which sent the LUNA token into a death spiral.

Within a few days, UST was only worth a few cents on the dollar, and LUNA had dropped to almost nothing.

About $40 billion worth of value was lost, and the implosion caused chaos in the industry as fears of stablecoins grew and other major assets went down.

Do Kwon Plan To Split Terra

Do Kwon, the outspoken co-founder, and CEO of Terraform Labs, suggested splitting Terra on May 16. He said, “The Terra ecosystem and its community are worth keeping.”

Kwon laid out a plan to bring the network back to life without using an algorithmic stablecoin. He suggested that a new token be given out to Terra investors to make them whole.

At first, most people in the community were skeptical about the plan. However, its chances improved dramatically after more than a dozen major validators said they would back it the next day.

LUNA Airdrop Is Also Live

Along with the launch of the blockchain, a new LUNA token was given away for free this morning.

According to the plan, 70% of the new tokens will be airdropped to previous LUNA, UST, and aUST holders. aUST stood for UST tokens staked in Terra’s flagship DeFi protocol, Anchor Protocol, which gave investors a 20% return on their stablecoins.

The drop did not give any tokens to Terraform Labs. The airdrop could be claimed by addresses that were eligible through the Terra website, and it was also supported on a number of major exchanges.

At press time, Bybit says that the price of LUNA is around $16. Now that the new Terra blockchain and LUNA token are up and running, the original LUNA and UST have been renamed LUNA Classic and UST Classic, respectively, and the original network is now called Terra Classic.

Terra’s New Blockchain Is Risky

Kwon’s new blockchain launch is a risky move, and he is now getting into more legal trouble. Several investors are planning to file fraud charges against Kwon, and he may also face criminal charges.

According to local reports, South Korean authorities are looking into whether or not Kwon ran a Ponzi scheme, and South Korea’s National Tax Service allegedly fined him $78 million for tax evasion.

Since Terra’s collapse, Kwon has been unusually quiet in his online communications, but he has said that Terraform Labs doesn’t owe any taxes in South Korea.