- According to CoinMarketCap, LUNA is now trading at $3.50 after a 19.74% drop in price over the last 24 hours.
- Trust in the new ecosystem is still very low because of speculations that emerged about Do Kwon.
- One of these speculations revolve around the issue of the new network being “community-owned.”
Terra’s LUNA 2.0 has crashed by almost 20% over the last day. According to CoinMarketCap, LUNA is now trading at $3.50 after a 19.74% drop in price over the last 24 hours, and after reaching a high of $4.62 over the same time period. LUNA also saw a 50.81% drop in price over the last week.
LUNA’s market cap is currently estimated to be around $731,780,901. The crypto also recorded a 24-hour trading volume of $362,645,111, which is up 15.78% from yesterday.
There have been different explanations regarding LUNA’s almost 20% drop, but many people believe it has to do with the fact that trust in the new ecosystem is still very low and because of speculations that emerged about Do Kwon.
One of these speculations revolve around the issue of the new network being “community-owned.”
A self-proclaimed Terra-insider called “FatMan” shared in a tweet on June 6 that “Do Kwon has stated numerous times that TFL has zero new LUNA tokens, making Terra 2 ‘community-owned’. This is an outright lie that nobody seems to be talking about. In fact, TFL owns 42M LUNA, worth over $200m, and they’re lying through their teeth.”
There are also speculations that Kwon was very active in the relaunch and used his LUNA holdings to vote in support of the hard fork.
All of these speculations are doing nothing good for the already questionable trust in the new Terra ecosystem. These speculations have not yet been verified, but they seem to have caused enough uncertainty to cause a massive sell-off of the token.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.