Updated on:12/02/2025 05:54 PM Dogecoin Co-founder Slams Terra's LUNA 2.0 Revival: 'Truly Dumb' Crypto Gamblers Warned
The cryptocurrency community continues to reel from the dramatic collapse of Terra's ecosystem, with Dogecoin co-founder Billy Markus delivering a sharp rebuke to those considering the newly launched LUNA 2.0. In a series of pointed tweets, Markus characterized potential investors in the revived token as "truly dumb crypto gamblers" who fail to learn from past mistakes.
The Terra blockchain implosion has sent shockwaves throughout the digital asset industry over recent weeks, as billions of dollars vanished overnight when the UST stablecoin lost its crucial dollar-pegged valuation. This catastrophic failure has left countless investors devastated, with life savings wiped out and financial futures suddenly thrown into uncertainty.
As forensic analysts and blockchain investigators delve deeper into the Terra collapse, multiple red flags have emerged suggesting potential malfeasance within the project's leadership structure. Allegations have surfaced regarding coordinated manipulation of retail investors by powerful entities, exploitation of the Mirror Protocol to benefit insiders, and troubling connections between Terra founder Do Kwon and previous failed algorithmic stablecoin ventures like Basis Cash.
The controversial Terraform Labs has announced plans to resurrect the failed ecosystem through a LUNA 2.0 relaunch, initially revealed by Do Kwon on May 16 through an extensive Twitter thread outlining a supposed recovery strategy. The original proposal involved creating a fork of the original blockchain while eliminating the problematic UST stablecoin component.
However, development teams have since clarified that LUNA 2.0 will actually constitute an entirely new blockchain rather than a simple fork. The token distribution mechanism will utilize an airdrop strategy targeting "stakers, holders, residual UST holders, and essential app developers" from the defunct Terra ecosystem.
Despite significant community opposition, the controversial proposal managed to secure overwhelming approval through Proposal 1622 on May 25, clearing the path for the highly contentious relaunch. Originally scheduled for May 27, the launch and subsequent token airdrop were ultimately delayed until May 28 at 06:00 GMT, citing technical considerations.
Industry experts remain deeply skeptical about the viability of Terra's resurrection strategy. Joshua Fernando, co-founder and CEO of blockchain carbon credit firm eCarbon, articulated several critical concerns about the proposed revival in a detailed email statement. His warnings included fundamental questions about how LUNA 2.0 would establish intrinsic value without a stablecoin component, the inevitable massive selling pressure once vesting periods conclude, and potential conflicts of interest among exchanges supporting the relaunch.
The broader cryptocurrency community has expressed similar skepticism across social media platforms, with countless observers drawing parallels between investing in LUNA 2.0 and returning to a toxic relationship. The sentiment reflects a broader warning within the blockchain investment community about the dangers of chasing failed projects under new branding.
Markus's blunt assessment joins a growing chorus of industry voices urging caution, suggesting that Terra's attempted resurrection represents more of a cash grab than a genuine recovery effort. As the blockchain industry continues to mature, such incidents highlight the critical importance of thorough due diligence and risk assessment in cryptocurrency investments.
