Ofcourse they will lose usercount. Every server suffers when a new server is released, atleast initially. Anyone who is unhappy playing a server (Yes, people play servers they dont like/enjoy. Wether its addiction or nothing else to do, or just cause their friends play) will always download and try a new one, and a % of those will stay. The rest will quit or return to previous server.
Also, with Chron being the way it is, a long running high user low rate, alot of people will feel like "iv put too much effort in here to just start again", so those users are safe. Chronicles has nothing to worry about. Sure, a user drop initially, then it will climb, and level out again. But long run, itll be fine.
At the end of the day though, Tai shouldnt have done what hes done....