The new LUNA launched by the Terra team started off on a tough note. The currency which was launched on May 28 by Terra was live on Coinmarketcap chart at 11.00 AM, Paris time. Though it opened at the market price of $17.80, five minutes later, it dropped to $13.25.
The huge price movement continued and at 11.53 AM, LUNA v2 spiked to $19.53, an inter-day high. From that point, the market price went downwards. It made its biggest drop in price at 12.15 PM, when the price was $13.83. In 5 minutes, the cryptocurrency lost $5, dropping to $8.20.
LUNA Volume Change During The Day
Its trading volume which had been stable prior to this moment suddenly increased as investors became skeptical and started dumping their LUNA. As the volume increased, the price of LUNA plummeted, showing that many investors were exiting positions on LUNA.
At 5.15 PM, LUNA dropped to its inter-day low of $4. This was a 76% loss in value. Efforts by the bulls to support the coin saw it make a mini rally to $6.196 at 6.05 PM before trading horizontally around the $5.100 – $5.400 range from 7.15 PM.
In his reaction to LUNA price action on the launch day, a LUNA investor, Andrey S, wrote:
“It is to be expected. When trust on the system is low, people will sell once they get their token.”
Another investor @TajoCrypto wrote on Twitter:
“People had to sell to recover some losses. Lots of people were behind on their bills due to the Luna collapse and so they had to take advantage of the Luna 2.0 launch and grab some money in case Terra 2.0 fails. Investor confidence in Luna is low. No one wants to lose twice.”
How Old LUNA Fared
The old LUNA (LUNC) has not fared better either. The coin is down 37% in the past 24 hours. Its current market price is $0.000083847335, raising questions whether the new Terra 2 chain is necessary.
After the crash of the Terra stablecoin, UST, the Binance CEO, Changpeng Zhao, suggested that the team focused on reducing circulation of LUNA through burning. In a May 14 post on Twitter, the Binance founder wrote:
“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin. “