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After the brutal collapse of the Terraform Labs, the LUNA token and the UST token, the community and the known figures in the crypto space were pretty much unhappy with the founder Do-Kwon. As they believed, the crisis may have been handled in a much better way and the extreme consequences that some of the people undertook could have been prevented.
While most of the community still demands to burn the excess minted LUNA coin, the founder moves ahead with the revival plan that includes a genesis chain with new tokens again called LUNA itself. The new coins would be air-dropped in installments to minimise the selling pressure. However, a major portion of the community appears to have decided to just ‘dump’ the new LUNA coins each time they receive them.
Why traders are not happy with the Terra Revival Plan?
- Luna Foundation Gaurd holds most of the LUNA tokens (nearly 50% as assumed by many) and hence the token may not be completely decentralized as claimed.
- Traders fail to develop trust in the tokenomics and the fundamentals of the LUNA coin and believe only the ‘dump crypto gamblers’ may jump into the LUNA trade
- On the other hand, the new plan has excluded the stable coin UST completely and hence this has been a huge concern for the community. As they believe, LUNA may not thrive all alone without UST.
The fact that the UST/Luna combo developed a strong developer ecosystem is no guarantee that Luna by itself would continue to do so.
— Fed Up Cassandra (@Frances_Coppola) May 25, 2022
It is a known fact that LUNA and UST prices were co-related with each other and only because of UST, did LUNA prices manage to range high to hit a 3-digit figure in a short period. Therefore, with the uncertainty hovering around the asset, many traders are pretty unsure of the upcoming progress of the token. Moreover, the lawsuit filed by the investors may also impact the LUNA price in future as it did to the XRP price due to the ongoing Ripple vs SEC Case.