Here’s Why Terra Luna Classic LUNC Is Soaring Today The Motley Fool
In 2022, investor sentiment shifted and wider cryptocurrency markets witnessed a downward trend. By 30 January, LUNC was trading at $46.27, down almost 53% from its all-time high in December. In May 2022, the Terra ecosystem collapsed as UST de-pegged from the USD.
In addition, the price surge also aligns with the recovery of the broader crypto market today, coinciding with the anticipation of a Bitcoin spot ETF approval. As a solution, the CEO Do Kwon had devised a plan to create a new LUNA token and name the original LUNA token LUNC. However, it is being noticed that despite being the older version, many are still holding on to their tokens while simultaneously stocking up on them; thereby increasing prices. Created by Terraform Labs as a part of the Terra ecosystem, LUNC (then LUNA) was one of the top cryptocurrency projects in the space since the last bull run. It was one of the many projects that had grown exponentially during the 2021 bull run.
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While the market conditions have been in turmoil, very few tokens have managed to catch the attention of the masses. From memecoins to those projects that were not even considered good prospects since recently, many new names have become popular. Alongside BTC, the whole cryptocurrency market has suffered greatly since last https://cryptominer.services/how-to-build-a-trading-platform-5-things-to-know/ year. After the frontrunner crypto started correcting from its all-time high of around $67,000 in November last year, the entire sector began to collapse. Remember that your decision to trade should depend on your expertise in the market, the spread of your portfolio, and how comfortable you feel about losing money.
LUNC and WLUNA are readily available on various cryptocurrency exchanges, and you can store them in multiple wallets and other storage options. It’s essential to do your research and choose https://crypto-trading.info/paypal-in-talks-to-buy-crypto-storage-company/ a reputable exchange or wallet that best fits your needs and preferences. WLUNA offers LUNC holders greater flexibility, interoperability, and yield opportunities than LUNC alone.
- The coin’s Directional Movement Index (DMI) assessed on a 12-hour chart showed this.
- The project has been introduced as a P2E game platform and is expected to integrate completely with the metaverse.
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- While there have been critical comments about the volume not being enough to push LUNC to upper levels right now, it may change as the demand for tokens grows out of popularity.
- The token holders are allowed to take part in the consensus whereas validators, like delegates, make their own stake.
You should consult with your advisors for all legal, business, investment, and tax implications and advice. Please use your best judgment and practice due diligence before interacting with smart contracts. Yet, the same devaluation story is repeating with LUNC’s younger LUNA continuation within the new Terra 2.0 blockchain. Predictably, the new Terra iteration lacks any algorithmic stablecoin, as it presents a major vulnerability.
LUNC Price Information
Typically, either the project team or the protocol’s foundation sends tokens to wallet addresses that have used the protocol or hold the project’s native tokens. Working in tandem with Terra’s native LUNA cryptocurrency, UST was dynamically contracting and increasing its supply, based on market needs. To remain stable, UST was not over-collateralized like other decentralized stablecoins, such as Dai (DAI). In May 2022, the Terra blockchain underwent a significant transformation.
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Massive amounts of UST were sold off in mass panic, having a knock-on effect on LUNA price, which crashed. Terra platform is developed using the Cosmos blockchain technology and is introduced to challenge incumbent retail payment applications. Looking at the positives, Terra Luna Classic could have the potential to offer gains for investors, depending on the length of investment and reactions.
What are the risks associated with investing in LUNC or WLUNA?
Just like other memecoins, it relies on exchange listings and social media engagement to exert positive valuation moves. Since its rebranding from LUNA to LUNC, the cryptocurrency has been worth less than one-thousandth of a dollar. For comparison, LUNA was originally priced in Terra’s ICO sale in 2019 at $0.80, while it reached its ATH price in April 2022 at $119. Thus, Binance’s announced move to honor the LUNC community proposal put forward earlier this month is a big deal.
How many Luna Classic coins are there?
A few validators have already favored the proposal, but top validators are yet vote. Terra Luna Classic validator Lunanauts expressed concerns about the legal repercussions of an earlier proposal 11913, which was rejected by the community. While there have been critical comments about the volume not being enough to push LUNC to upper levels right now, it may change as the demand for tokens grows out of popularity. Moreover, the genesis airdrop did not properly deliver LUNA tokens due to technical issues.
Before buying LUNC on any exchange, we recommend you research and compare the fees, security measures, and user reviews of different exchanges to find the one that best suits your needs. Once you choose an exchange, you can create an account, complete the necessary https://coinbreakingnews.info/blog/oc-c-congratulates-nrg-fleet-services-on-its/ verification steps, and deposit funds to buy LUNC. LUNA was launched in 2018 and is the primary token used for staking and governance for the Terra network. Since the collapse of LUNA and UST in mid-May, most investors have lost faith in the Terra community.
In May 2022, the Terra ecosystem experienced a significant disruption when its algorithmic stablecoin, TerraUSD (UST), lost its peg to the US dollar. This event led to a rapid decline in the ecosystem’s value, resulting in billions of dollars in losses for investors. The circulating supply of more than six trillion LUNC coins has a detrimental effect on the token price. As a result, Binance, the biggest cryptocurrency exchange in the world, is now burning all trading fees collected from LUNC trading. Tokenholders may also delegate others to validate transactions on their behalf, sharing in any revenue generated.
Can LUNC be used in DeFi protocols?
There is a theory that the additional term “classic” is a reference to the Ethereum / Ethereum Classic split in 2017. According to CEO, Do Kwon, the collapse of UST in the spring of 2022 is the equivalent moment of the Ethereum’s DAO hack that took place in 2017. LUNC is a token on the Terra network, while WLUNA is an ERC20 token representing LUNC on the Ethereum network.
Bitcoin, Bitcoin Cash, Ethereum, Litecoin and other popular cryptocurrencies can be purchased with U.S. dollars using Coinbase. Once you have purchased Bitcoin using Coinbase, you can then transfer your Bitcoin to an exchange such as Binance to purchase other cryptocurrencies, including Terra Classic. The primary real-world impact of LUNC burn is that it aims to increase LUNC value by decreasing its supply. With fewer tokens in circulation, each token inherently becomes more valuable. Over time, this mechanism creates a deflationary pressure that helps to boost LUNC value. For token holders, this means that the value of their holdings could potentially increase over time, leading to financial gain.