Key takeaways:
- Four crypto analysts believe that the new Terra (LUNA) faces a bleak future in the crypto industry and markets.
The newly launched Terra (LUNA) digital asset faces a bleak and uncertain future. According to a report by the team at Bloomberg, the new Terra (LUNA) token has ‘no future.’ The report by Bloomberg is hinged upon the insights of four crypto analysts from various facets of the industry.
New LUNA Was Never Meant to Survive
To being with, and according to the founder of Quantum Economics, Mati Greenspan, the new LUNA ‘was never meant to survive.’
Mr. Greenspan further points out that the new chain and token was ‘simply a mechanism for some who were heavily invested to recoup some of their losses at the expense of new money coming in from the hype.’ He also added that he does not see the price of LUNA going up ever again.
LUNA Went Live During Unfavorable Macro and Crypto Environments
Secondly, Kunal Goel, a research analyst at Messari, believes that the Terra 2.0 is staring at multiple problems.
The new chain and LUNA token went live during the ongoing unfavorable macro and crypto environment. Furthermore, the new LUNA does not have an algorithmic stablecoin and does not differentiate itself from other smart contract platforms. In addition, ‘the regulatory overhang is a key concern in investors’ minds.’
New LUNA Will have A Hard Time Distinguishing Itself
Thirdly, Riyad Carey, a research analyst at Kaiko, sees Terra (LUNA) having a hard time distinguishing itself in a crowded L1 ecosystem ‘with large players like Avalanche and Solana and of course Ethereum.’
Mr. Carey also adds that the original Terra had a robust ecosystem centered around UST, aUST on the Anchor Protocol, and the burning of LUNA to mint UST.
However, the new chain does not have such a mechanism and will’ be facing inflation in the form of vesting/unlocks, and obviously has the baggage of being tied to the largest ever crypto collapse. So it will definitely be a tough path forward.’
Do Kwon Has Lost Credibility from the Community
Fourthly, Khaleelulla Baig, founder and CEO of KoinBasket, told Bloomberg that everyone wants to exit the new LUNA due to the fact that Do Kwon has lost all credibility among the crypto community. He said:
Everyone wants to exit the new Luna as the founder Do Kwon has lost credibility among the community.
Luna has no future.
The founder didn’t build firewalls around the algo even when they had an opportunity to do so. That’s why they have lost credibility. B
uilding the new Luna within the existing community will not make any sense now. Smart money will move to fundamental coins from such risky coins.