KEY POINTS

  • Terra 2.0 might introduce a new decentralized stablecoin
  • Terra's collapse was triggered when its algorithmic stablecoin depegged
  • LUNA Classic, the old native token, was trading down 22.17 percent at $0.0001298

Terraform Labs CEO and co-founder Do Kwon is reportedly working on a new stablecoin built on top of the new Terra 2.0 blockchain, an insider claims.

Kwon, on May 13, broke the news that while Terra will move forward to a new blockchain and introduce a new version of its native token, it will no longer bring along TerraUSD (UST). "I still believe that decentralized economies deserve decentralized money – but it is clear that $UST in its current form will not be that money," Kwon said in a tweet.

A Twitter user who goes by the name FatManTerra, who previously revealed several insider information about Terra's collapse, shared a fresh set of interesting details about the Terra co-founder. "A verified insider close to TFL has confirmed that Do Kwon is currently working on design plans for a new decentralized stablecoin that will be built atop Terra 2."

Bringing Crypto Mainstream DeFi and Beyond 4-36 screenshot
As a part of SKALE network's mainnet launch series, our CEO, Do Kwon joined Jack O'Holleran CEO of SKALE Labs and Simon Seojoon Kim CEO and managing partner from Hashed talked about bringing crypto mainstream in this panel talk. YouTube Screenshot/Terra Offiicial YouTube Channel

Many investors jumped into the LUNA 2.0 bandwagon hoping that Kwon and his team have learned their lessons in the past. This was proven when they ditched the algorithmic stablecoin TerraUSD when the new blockchain launched.

But if the insider information is accurate, it seems that Kwon is at it again, this time no longer an algorithmic but a decentralized stablecoin. While many doubt this supposed new initiative, one Twitter user welcomed the idea only if the stablecoin is "fully/overly collateralized."

But, like many other Terra investors, FatManTerra wanted to consider the supposed stablecoin on the condition that "TFL step away from Terra 2 though, they are bad actors and are toxic to this space. Hand control back to the builders so they can truly flourish."

The new LUNA 2.0 token was rolled out over the weekend and it traded at $19.54, but it was a short-lived glory since several hours later, the price nosedived to a low $5.

LUNA Classic, the old native token, was trading down 22.17 percent at $0.0001298 with a 24-hour volume of $336,923,540, while the new LUNA 2.0 was trading up 43.85 percent at $8.56 with a 24-hour volume of $865,999,103 as of 4:57 a.m. ET on Tuesday, according to the data from CoinMarketCap.

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