Terra LUNA 2.0: Collapse to resurrection, meet the new crypto avatar

'Terra 2.0 is coming', LUNA's official Twitter account posted on Wednesday as the hot crypto project is set to launch the next version of its digital token after a drastic failure a few weeks back which sent the entire crypto universe in a tizzy.

The new token is set to launch on May 27, as per its blog post on Terra Ecosystem Revival Plan 2. It will effectively create a new Terra chain without the algorithmic stablecoin. The old chain will be called Terra Classic (token: $LUNC), and the new chain will be called Terra (token: $LUNA).

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New LUNA tokens will be airdropped across LUNA Classic stakers, LUNA Classic holders, residual UST holders, and essential app developers of Terra Classic, it said in a Tweet.

The world's biggest crypto exchange Binance also supported the news as it tweeted, "The Terra community just passed a vote to ‘Rebirth Terra Network’. We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment."

A few weeks back Terra's stable coin UST became unpegged to fiat and leading to a 100 percent fall in the value of its native token LUNA. The crash of these two coins has been compared to a mini 2008 financial crisis within the crypto eco-system, with their collapse having a knock-on effect on other digital coins and projects, wiping billions of dollars off the market.