Crypto investors are still not over the dramatic Terra LUNA crash. And why would they? After all, Terra investors globally lost billions of dollars when the algorithmic-stablecoin project crashed. But now, it seems like Terra Classic [LUNC], a token of the Terra ecosystem, is making a comeback. Terra Classic (LUNC), the original chain of the collapsed Terra (LUNA) ecosystem, continues to gain interest among investors, attracting significant capital inflows contrary to the general crypto market sentiments. As the crash was dramatic, many crypto experts anticipated that LUNC would go back to zero, but the token appears to be earning the support of its community. Especially when things are not going that great with major cryptocurrencies like Bitcoin, Ethereum, and more. The support is highlighted by the US$534 million that has flown into the network's market capitalization within the last four days (June 26-29). On June 26, Terra Classic's market worth stood at US$388 million, surging as high as US$922 million by June 29, a growth of 137% as per CoinMarketCap data.
Additionally, Finbold reported that Terra Classic holders surged by over 500% in a month. On May 9, there were 1,642 holders, which grew to 10,266 on June 5, an increase of 525.21%. Amid the controversies associated with the entire Terra ecosystem, investors will be keen to check if the latest spike in value and capital will stick or if it's just a short-lived fad.
The LUNC price began to stabilize ever since the minting of new coins was halted. Moreover, the community voted and passed the LUNC burn proposal that destroyed some amount of the token during each transaction. At the press time, the price is floating within the US$0.000133 to US$0.000145 range and indicating huge chances of a breakout in the next couple of hours or days.
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements.
Development on Terra began in January 2018, and its mainnet officially launched in April 2019. As of September 2021, it offers stablecoins pegged to the U.S. dollar, South Korean won, Mongolian tugrik, and the International Monetary Fund's Special Drawing Rights basket of currencies — and it intends to roll out additional options.
Terra's native token, LUNA, is used to stabilize the price of the protocol's stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token. Terra seeks to set itself apart through its use of fiat-pegged stablecoins, stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand. It does so by incentivizing LUNA holders to swap LUNA and stablecoins at profitable exchange rates, as needed, to either expand or contract the stablecoin supply to match demand.
Terra Classic (LUNC) background check
Terra Classic and its sibling stablecoin, TerraClassicUSD (USTC-USTC), were created by those carrying out a blockchain project known as Terra. Launched as a stablecoin, TerraClassicUSD was supposed to continuously be worth US$1 per coin. Its relationship with Terra Classic was intended to help its price stay constant. However, due to a high number of withdrawals amid the collapse of cryptos in general, USTC's value fell below US$1 starting in May, while the value of Terra Classic dropped to "virtually zero."
Recently, hacktivist collective Anonymous has vowed to "make sure" Terra Co-founder Do Kwon is "brought to justice as soon as feasible." On Sunday, a video allegedly made by the hacker collective Anonymous rehashed a long list of Kwon's alleged wrongdoings. This includes withdrawing US$80 million per month from UST and LUNA before the latter's collapse and his part in the demise of the stablecoin Basis Cash. Disaster struck the CEO of Terraform Labs, Do Kwon, when the Terra blockchain (LUNA) witnessed a crash that was unforeseen by him. It resulted in pushing down the UST, Terra's stablecoin to the lowest depth.
If you would like to know where to buy Terra Classic (LUNC) at the current rate, the top cryptocurrency exchanges for trading in Terra Classic stock are currently Binance, OKX, MEXC, Bybit, and AAX. You can find others listed on our crypto exchanges page.
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