Luna has launched a new blockchain that gets rid of UST – which was its hole point – and now operates as just a blockchain (without a point?).
Just as what is now called Luna Classic, however, Luna
2 crashed too, down from $19.5 at launch to $5.9, far lower than the speculated $50 by some.
Old Luna holders will get the new crashing Luna based on a complex distribution or airdrop model that comes with a six months locktime.
“Pre-attack Luna holders distribution – for all holders with a snapshot balance of 10k Luna or less, 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 mnth cliff,” Do Kwon, Luna’s founder, said.
UST holders will get some as well, which means this isn’t a fork in the classical sense where you get 1 to 1.
Instead, they’re just relaunching the blockchain while ditching UST which is now worth 2 cent to the dollar.
This way they can move on and Do Kwon can keep having a project to run, though why anyone would further risk any funds in Luna, is anyone’s guess.
Alternatively however it can be seen as just how you do bankruptcy in crypto, just launch a new token and pretend nothing happened.
Eventually that new token may be rebranded to not-luna, and often you get a repeat because if the oversight was so great as to give us the first proper token collapse, then why shouldn’t that negligence and carelessness continue?
Which is why usually only loan sharks lend to bankrupts. Especially as Do Kwon has not yet explained how he came up with such an atrocious ‘algorithm’ that whipped out the project entirely.
It’s only in scams we have seen such a thing, and actual scams. Because experimentation can go wrong, but not so wrong as to wipe out $50 billion.
Because if it can, and not due to some hack, then one does have to wonder whether Do Kwon was not aware of it. Whether he was not aware that his algo was actually trash and not an algo at all.
That matters as why should anyone expect anything better with this new luna? Except there isn’t an algo here, there is no UST, instead there’s just another blockchain among countless of others.