- LUNA may be on borrowed time as the cryptocurrency drops to its last support
- Community goodwill and a proposal for revival may be the last support
- LUNA v2 may not be free from threat
LUNA, the Terra blockchain cryptocurrency, is currently trading at $0.0001254, according to Coinmarketcap data. The coin is on the watch-list of more than a million users on the platform today, May 21, for obvious reasons. Not just has Terra LUNA lost 100% of its value, the chart shows that LUNA is actually on its way to $0 in a rapid drop that has shocked most investors.
It is a testament to the volatility of the coin market where profits and losses can happen quickly.
LUNA On its Last Support
A chart from Technology Friendly, Hemat Tata, shows that at its current value, LUNA is just resting on its very last support. If this support is broken, the community can as well sell goodbye to the coin.
It appears that what is preventing LUNA from dropping to the nil point is the goodwill and massive support that the Terra team has received from the crypto community since the news of the UST fiasco broke.
Amended Terra Proposal 1623
On May 20, the Terra team released an amendment to its proposal, meant to revive the Terra ecosystem. According to the team, the new document incorporates the suggestions of the community.
The action plans in the amended Proposal 1623 are geared towards mitigating inflationary pressure on Terra tokens, create a liquidity profile for holders prior to the crash of the LUNA and reduce the distribution of UST to post attack holders.
Voting on the amended proposal is expected to end on May 25.
Looking at the proposal, it has become obvious that the Terra ecosystem, whose initial vision depended more on the success of its algorithmic stablecoin, UST, is now focused on building a reputation as a layer one protocol. The team seems to concede that if there is something that must be saved in Terra, it has to be something that its incredible developers are really good at.
The Challenges of LUNA Classic
Even though Terra intends to fork its blockchain, the new LUNA (LUNA Classic) may still face some challenges. According to a statement by The Official Finbit Token Project:
“Understand Terra v1 and v2 are dead, you’ll never get your lost money back and they have many gov problems too. South Korea’s tax authorities have fined Terraform Labs a hefty €75m and could give the crashed blockchain project the final deathblow before it gets a fresh start.”
However, for the sake of investors, many in the crypto community are hoping that the amended proposal works.