The upcoming launch of Terra 2.0 and the LUNA airdrop – what's known by this hour (updated)

The founder of the Terra ecosystem, Do Kwon, announced that the second version of the network has been launched and is already producing blocks. He also added that users received their LUNA 2.0 coins as part of the promised airdrop. To check your balance, log in to Terra Station and refresh the page.

What happened and why the market needs Terra 2.0

In early May 2022, the algorithmic stablecoin of the Terra crypto project ecosystem-TerraUSD (UST) – lost its peg to the underlying asset-the US dollar. As a result, the rate of the "stable coin" dropped to $0. After UST, the native Terra token-the LUNA cryptocurrency-went to the bottom. Against the background of the devaluation of coins, their investors lost money.
What exactly caused the loss of the TerraUSD peg to the US dollar is not known for sure. Members of the crypto community assumethat UST lost parity with the national currency of America against the background of the withdrawal of a large amount of funds from the Anchor protocol, in which it was possible to profitably stake a stablecoin. Other possible reasons include a dump from BlackRock and Citadel.
Terra developers tried to restore the TerraUSD exchange rate with additional funding. Unfortunately for the project team, the scheme did not work.