terra luna price drops below $6

The price of Luna 2 – a name given to the native token of the new Terra 2.0 blockchain – moved below the $6 threshold during the weekend with 24-hour volumes rising to nearly $500 million.

In the past 24 hours, the price of LUNA 2 has risen nearly 6% to $5.18 per coin in line with the positive performance of the entire ecosystem during that same period.

This move is coming only days after the token experienced a brief uptrend following its listing on Binance – one of the world’s most popular pure-play crypto trading platforms.

However, it appears that buying ammo has been exhausted and that has led to the continuation of the token’s downtrend as the network keeps struggling to instill confidence among investors following the collapse of its flagship stablecoin UST.

There haven’t been many new developments recently concerning Terra 2.0 or its native token LUNA although one event in particular has raised eyebrows within the crypto community. It appears that Do Kwon, the founder of Terraform Labs – the company behind the blockchain project – has made his Twitter account private.

Kwon has been known for being very vocal about the former success and prospects of the Terra ecosystem and this is the reason why his decision to shut down one of the main channels he used to communicate with the Terra community has been considered odd by crypto enthusiasts.

Terra Founder on South Korean Authorities’ Crosshairs

Pressure is mounting for the controversial founder of the failed stablecoin project that led to losses of over $60 billion for token holders as authorities in South Korea – one of the locations in which Terraform Labs was incorporated – have created a task force to investigate what happened and whether there was some form of foul play involved.

On 31 May, the Asian country announced the creation of the Digital Assets Committee, an organization that will develop and enforce an adequate regulatory framework for the nation’s up-and-coming crypto industry.

The move comes a week after the Seoul Metropolitan Police Agency opened an investigation against Kwon as there appears to be evidence of embezzlement. As a result, authorities have asked exchanges to prevent funds from being withdrawn from any accounts linked to the Luna Foundation Guard (LFG).

However, a report from CNBC released earlier this month indicated that Kwon is unlikely to face jail for his actions and involvement in the project. Instead, it is probable that he will be slapped with fines and economic settlements for class-action lawsuits claiming repairs for the project’s demise.

Other Blockchains Offer Incentives to Attract Terra’s Developers

Multiple blockchain projects have been creating programs that seek to attract top talent that was previously involved in the creation of decentralized applications (dApps) and layer-two chains on Terra.

Polygon has been one of the latest projects to reveal an initiative consisting of a $450 million fund backed by top names in the venture capital industry including Sequoia Capital to help Terra developers in migrating their software to their network.

“We felt there was an opportunity for those that wanted to build on Polygon to make sure that they knew that we were here to welcome them with open arms, [and] that we were going to help them financially get back on their feet and support their movement”, stated Ryan Wyatt, the Chief Executive Officer for Polygon Studios, during an interview with CoinDesk.

Binance has also been vocal about its intention to become a home for those who would like to migrate their projects to the BNB Chain. To incentivize developers, they are offering access to the blockchain’s flagship $1 billion investment fund while also providing support in areas such as marketing, business development, and tokenomics for the most promising projects.

Algorithm-based Predictions Point to a Positive Outlook for Terra Luna

According to algorithm-based forecasting services, even though the outlook for Luna 2 in the short term might be negative, its mid-to-long-term outlook is positive.

For the next 14 days, Wallet Investor is expecting that the price will decline to a range between $4.6 and $4.9 per coin. However, in the next 5 years, this same service is expecting to see the token rising to $256 per coin.

Meanwhile, another forecasting service, Gov.Capital, is expecting that the price of LUNA will end this year at around $90 per coin while the token is expected to rise to $103 a year from now.

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