Why Terra 2.0 Is Doomed to Fail.
Without the UST, Terra 2.0 has no unique mission that will differentiate it from its competitors.
Life is strange sometimes.
Eight days before the explosion of the Terra ecosystem, Do Kwon predicted the death of 95% of the existing cryptocurrencies. So far, nothing too serious, since Do Kwon was stating an obvious fact to me. What was more embarrassing was how happy Do Kwon seemed to be about it:
“There’s entertainment in watching companies die.”
This lack of humility would come back to bite him in the ass eight days later. The explosion of the Terra ecosystem, whose flaws were exposed and known to all. These flaws were only waiting to be exploited by people or entities with sufficient financial means to do so.
Not wanting to give up, Do Kwon liquidated over 80K BTC in reserves in the week that LUNA and UST collapsed. He then presented a plan for a Terra 2.0 explaining that Terra was much more than UST.
His plan was not convincing, as many people called on Do Kwon to simply let Terra die. Former Terra advocate Changpeng Zhao, the founder of Binance, even mocked Do Kwon and his plan for a Terra 2.0 on Twitter:
“This won't work. Forking does not give the new fork any value. That's wishful thinking.”