Do Kwon Releases 'Luna 2.0' but Criticism Persists: "A Coin That Makes You a Fool"

Price Volatility After 'Luna 2.0' Launch... Netizens Say "It Will Burst Like a Bubble"

On the morning of the 24th, when the cryptocurrency market was showing a downward trend due to the Luna crash and the Federal Reserve's interest rate hikes, a trading support notice was displayed at the Bithumb Customer Center in Seocho-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] Do Kwon, CEO of Terraform Labs, has released 'Luna 2.0,' which has been experiencing sharp price fluctuations since its listing, drawing criticism from investors. Concerns over investor losses are rising as Luna 2.0 launches before the aftershocks of the Luna-Terra crash have settled. Some voices even argue that virtual assets are no different from gambling.

According to cryptocurrency information site CoinMarketCap as of 1:30 PM on the 31st, Luna 2.0 was trading at $8.72, up 53% from $5.67 at the same time the previous day. Luna 2.0 is currently listed on about 10 overseas exchanges including Bybit, Huobi Global, Gate.io, OKX, and Bitrue. Major domestic cryptocurrency exchanges in Korea are not handling Luna 2.0.

Luna 2.0 has experienced volatile price swings since its launch. It started trading at $17.8 at 6 PM on the 28th, dropped to the $13 range, rose again above $19, and then fell back to around $5. Particularly over the weekend of the 28th-29th, Luna 2.0’s highest price was $19.54 and the lowest was $4.85, showing a 75% drop from the peak.

Due to the sharp volatility, concerns and criticism about Luna 2.0 continue. On the US online community Reddit, overseas netizens commented, "No more Luna. Luna 2.0 should never have been released. We don’t want Luna 3.0 or Luna 4.0," "Who would trust Luna now?" "Launching Luna 2.0 is wrong. Knowing Luna crashed, what can we trust about Luna 2.0?" and "No one expects Luna 2.0 to be optimistic."

In particular, one foreign netizen on Twitter criticized CEO Kwon, saying, "You are making fools of everyone with Luna 2.0. This (Luna 2.0) will also end up as a bubble." In response, CEO Kwon left a brief reply saying "Ok" without further explanation.

Photo by Twitter screen capture.

Earlier, Terraform Labs launched a new blockchain called Terra 2.0 on the 28th, renaming the existing Luna as 'Luna Classic (LUNC)' and the new virtual asset as 'Luna (LUNA).' Terraform Labs announced the launch of Terra 2.0 on its website, stating, "Driven by a passionate community and deep developers, the new Terra blockchain is one of the most decentralized ever created."

However, industry experts have also expressed concerns about Terra 2.0 launching without addressing the vulnerabilities of the previous Terra and Luna. Billy Markus, co-founder of Dogecoin, criticized, "They should not create new investors and should leave the industry forever," while Zhao Changpeng, CEO of the world’s largest cryptocurrency exchange Binance, said, "The plan to revive the Terra ecosystem is unachievable and merely wishful thinking."

The extreme price fluctuations of Luna 2.0 appear to be influenced by an 'airdrop.' An airdrop means distributing Luna 2.0 coins for free to holders of the existing Luna coin. CEO Kwon previously announced that 70% of Luna 2.0 would be distributed to holders of the existing Luna Classic and Terra.

In other words, volatility increased as existing investors tried to reduce losses by selling the newly received Luna 2.0, while short-term investors seeking quick profits also rushed in amid the extreme volatility.

Meanwhile, the five major domestic cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) have decided to support the airdrop for existing Luna holders. However, since domestic exchanges currently do not support Luna-related trading, investors must use overseas exchanges to sell Luna 2.0.

This content was produced with the assistance of AI translation services.