Experts see no future for LUNA 2.0. The Terra crash wiped out UST and LUNA from the market, and plunged Bitcoin and altcoins to historic lows. The sudden billion dollar liquidation made tens of thousands of investors suffer. Now experts think that even the new LUNA will not survive. Here are the surprising predictions…
LUNA under the spotlight, governments step in
Terra Luna and UST are causing trouble in the new token Luna 2.0. Do Kwon and his company are currently under investigation in both South Korea and the US. In South Korea, authorities are investigating the Terra team for selling BTC to support the UST and keep the dollar stable. In addition, Do Kwon and the Terra team are also convicted of tax evasion close to $80 million. In the US, the Terra crew and Do Kwon are under investigation in connection with the UST’s situation. The SEC wants to determine whether the UST has been issued as an illegal and unregistered security.
What do the experts say?
Mati Greenspan, founder of Quantum Economics, is of the opinion that Luna 2.0 should never grow. According to his cat, the new token is designed to make up for funds lost in the UST and LUNA collapse. He also says that there are no identifiable factors that would drive up the price of the Luna 2.0:
Luna 2 was never designed to survive. It was just a mechanism for some who had invested heavily to make up for their losses at the expense of new money from the hype. I don’t see any reason for the price to go up.
“LUNA 2.0 is just a cause for concern”
Kunal Goel, another analyst at Messari, said that Luna 2.0 in a bad market environment (bear market) He says it will be difficult for him to survive because he was created. The original Luna derived its value from being associated with UST. Luna 2.0 does not have this support. Also, the legal issues currently surrounding the Terra team and its founder aren’t helping either. Goel says:
Terra 2.0 suffers from multiple issues. It came to life in an unfavorable macro and crypto environment. Without an algorithmic stablecoin, there is no clear point of differentiation from other smart contract platforms. Finally, regulatory overhang is a major concern in the minds of investors.
Riyad Carey, analyst at Kaiko, Luna 2.0 and Terra 2.0 He thinks that Ethereum will have a hard time breaking into a market where big players like Avalanche and Solana have already been established. He also interprets the loss of UST connectivity and lack of token burning mechanism as a negative factor:
Terra 2.0 will have a hard time distinguishing itself in a crowded L1 ecosystem with big players like Avalanche and Solana and of course Ethereum. While the original Terra had a pretty solid ecosystem, much of this activity was centered around UST and AUST (UST earnings return on Anchor). Additionally, some price movements relied on the burning of the LUNA to create the UST. So now Luna 2 doesn’t have that mechanism, it will face inflation in the form of entitlement/unlock and frankly it will have the baggage of being tied to the biggest crypto crash ever. So it will definitely be a tough road forward.
“Smart money is now moving to the right altcoins”
According to Khaleelulla Baig, CEO and founder of KoinBasket Terra team and Do Kwon lost credibility in the industry and now everyone wants to give up on Luna 2.0. Baig says:
Founder Do Kwon is discredited in the community, so everyone wants to exit the new Luna. Luna has no future. The founder didn’t build firewalls around the algo even though he had the opportunity. So they lost their credibility. Building the new Luna within the existing community will no longer make sense. In this way, smart money is moving from such risky cryptocurrencies to basic cryptocurrencies.
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