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Prabhjeet Bhatla
May 28, 2022
by Prabhjeet Bhatla

Dogecoin Co-Founder Calls LUNA 2.0 Believers ‘Truly Dumb’

Dogecoin LUNA 2.0
Terra's attempt to relaunch LUNA was criticized by Dogecoin co-founder Billy Markus, who called individuals who bought into it "really foolish."

The disintegration of the Terra environment has dominated news headlines in recent weeks. The UST stablecoin lost its $1 price peg, causing users to lose billions of dollars and their lives to be turned upside down.

Several accounts of questionable activities have been voiced by internet investigators and whistleblowers during the fallout. All of this points to nefarious dealings within and beyond the Terra hierarchy.

Allegations include prominent people manipulating Terra retail investors, senior figures enriching themselves using the Mirror Protocol, and Terra founder Do Kwon's ties to the failed algorithmic stablecoin project Basis Cash.

Terraform Labs to relaunch LUNA

Do Kwon's tweetstorm describing a Terra rebirth plan broke the news of a relaunch on May 16. Originally, this strategy called for forking the existing chain into a new chain that didn't include the UST stablecoin.

LUNA 2.0 will be a completely new chain, not a fork, according to the developers.

The new chain's tokens will be distributed by airdrop to the previous chain's "stakers, holders, residual UST holders, and critical app developers."

On May 25, the community voted "overwhelmingly" to pass Proposition 1623, paving the door for the launch of LUNA 2.0.

The relaunch and token airdrop were supposed to happen on May 27, but due to an announcement made on that day, it has been postponed until May 28 at 06:00 GMT.

It’s a thumbs down from the community

Joshua Fernando, co-founder, and CEO of blockchain carbon credit business eCarbon, discussed the risks of restarting LUNA. Fernando addressed numerous important points concerning the relaunch in an email, including

  • The lack of transparency about how LUNA 2.0 would derive value, especially because it will lack a stablecoin component.

  • When the vesting period finishes, there will be a lot of selling pressure as investors try to recoup their losses and move to safer enterprises.

  • There is a potential conflict of interest with exchanges (who are backing the airdrop and relaunch), as they may be attempting to recoup losses as well.

    • On crypto Twitter, the sentiment is similar, with plenty of jokes about the launching. @Mister Ch0c, for example, compared investing in LUNA 2.0 to rekindling a relationship with a cheating ex.

    Similarly, Markus didn't hold back while expressing his views on LUNA 2.0 investors, which he referred to as "really foolish crypto gamblers."

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    Dogecoin Co-Founder Calls LUNA 2.0 Believers ‘Truly Dumb’
    Prabhjeet Bhatla
    Prabhjeet Bhatla is a cryptocurrency writer covering startups and a researcher since 2020. She has authored many articles for Entrepreneur India and APAC (digital and print) on cryptocurrency and ever-evolving Blockchain, the technology behind Bitcoin, and other cryptocurrencies. She specializes in applied cryptography, privacy-enhanced information storage systems, anonymous cryptocurrencies, elliptic curve crypto-systems, and satellite television piracy.

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