The new Luna cryptocurrency belonging to the collapsed Terra blockchain that was relaunched over the weekend saw its value drop almost 70% during a massive selloff after it was distributed.

The new tokens were “airdropped” to investors by Terraform Labs, the developer of the Terra stablecoin, as part of the revival of the blockchain after it went into a death spiral in early May. During its crash, the original Luna cryptocurrency lost more than 99% of its value and is now completely worthless.

The original Terra blockchain had two cryptocurrencies. A stablecoin TerraUSD, or UST, which kept parity with the US Dollar, was used to make it easier to trade with other cryptocurrencies because of its low volatility and Luna, which was used to help UST keep its parity, or “peg,” with USD. These tokens have been renamed “Terra Classic” and “Luna Classic.”

Image: CoinGecko

The new Luna tokens on the revived blockchain opened with a market value of approximately $19.50 and now sell at about $6.60 at 12 p.m. EDT, a drop of 67%, according to CoinGecko.

In order to provide an incentive for investors to maintain their stake in the revived blockchain, co-founder and Chief Executive Do Kwon announced that the new Luna tokens would be distributed to holders who kept holding Luna tokens even during the crash.

The new blockchain, called Phoenix-1, launched early Saturday morning. Holders with more than 10,000 Luna from before the collapse were disbursed 30% of their holdings immediately, with the remaining 70% to be rolled out over the next two years. That was done to prevent another crash caused by selloffs.

Image: TheDigitalArtist/Pixabay