We are six months deep into a crypto crash that has wiped out $1.6 trillion of the asset class’s market capitalization, so what have we learned? Judging by the resurrection of the protocol that experienced the cash’s most dramatic implosion, and a spate of new and buzzy Web3 projects and multi-billion-dollar investments: absolutely nothing.
Participants in the Terra-Luna ecosystem, where $40 billion was wiped out after a run on its UST stablecoin, causing untold pain to average people who invested, recently approved a proposal by its founder to abandon the original blockchain and token and simply create a new blockchain. The new protocol is called Terra 2.0, and won’t have a new version of UST, but will resurrect the Luna token that crashed to near-zero. A protocol to bootstrap NFTs on the new Terra chain, called Soil, was announced early Thursday with a tweet promising to “nurture projects with nutrients and organic matter that together, support life and build the ecosystem.”