Terra ecosystem founder and CEO Do Kwon announced that the second version of the network has been launched and is already producing blocks. The promised airdrop took place and users received their LUNA coins 2.0 .

As you know, in early May 2022, the algorithmic stablecoin of the Terra ecosystem – TerraUSD (UST) lost its peg to the base asset – the US dollar.

As a result, the Stablecoin rate collapsed to $0. Following him, the native Terra token – LUNA collapsed.

Large crypto exchanges supported Terra.

Trust in Terra eroded?

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The upcoming launch of Terra 2.0 and airdrop LUNA – what is known.

On May 28, 2022, after numerous scandals around the Terra crypto project, the second version of its protocol should be launched.

Source Twitter

By TradingView

At the moment, the exact reason for the loss of Terra USD to the US dollar is unknown. Among the possible reasons is that a large amount of funds was withdrawn from Anchor, the protocol for stablecoin staking, as well as a dump from Citadel and BlackRock.

The first attempt to restore the Terra course was additional funding, but this plan did not bring the desired result.

The second attempt was to create a version of Terra 2.0, scheduled for May 28, 2022 at 6:00 AM UTC. The developers want to rename the first version of Terra Classic, according to the microblog of the project.

The second version will also have project ecosystem tools available, such as the crypto wallet and blockchain – Explorer, many decentralized applications that were popular in the previous project.

Large crmp exchanges supported the Terra team, which encourages investors. Among them Huobi and Binance. Spectrum, Nebula, Prism, Astroport and other partners will support the new branch.

A new platform code has appeared on GitHUB.

Airdrop Terra.

Airdrop, or token distribution, occurred against the backdrop of the launch of Terra 2.0. Those users who had LUNA and UST in their wallets before the coin collapsed, as well as investors who bought assets during the fall, will receive new coins.

To compile lists of investors who will transfer cryptocurrency, developers use snapshots (screenshots of the state of the network) from May 7 and 27, 2022. The developers plan to distribute coins on the first block of Terra 2.0. Its generation is scheduled for 06:00 GMT  on May 28, 2022. The developers explained the airdrop scheme using the example: Alice, who kept LUNA on a deposit in the Anchor protocol.

“Alice will receive 30% of her airdrop during the generation of the first block. Further, the remnants of her share will be linearly distributed to the same wallet address for two years with a break of 6 months “

Trust in Terra 2.0 cannot be returned?

Market experts believe that the restart will not help developers restore the project, since the most difficult will be to regain the trust of users.

The main questions for investors are refunds: those who bought UST for 10 cents will receive the same refund as investors who bought for $1 before its collapse. Also, hopes cool from the fact that a quick recovery of Terra is not possible, since the founders abandoned UST, which gave a yield of 20% per annum from staking on Anchor.

The amount of blocked funds amounted to more than $17bn, of which 75% was the share of deposits in UST.

However, at the same time, experts believe that despite the situation with Terra, the market needs crypto projects such as algorithmic Stablecoins. So, there are expectations that the storm will subside over time.

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May 30, 2022