LUNC Staking Continues, LUNA Classic Price Soars 52% to $0.0002364
Terra LUNA Classic price soars 52% to $0.0002364, and recent LUNC staking and 1.2 % burn of tax play a key role in LUNC price hike.
After the Terra ecosystem crashed and LUNA became Terra Luna Classic (LUNC), the price has been making a strong comeback. Since hitting an all-time low on May 13, when the price dropped to just $0.000000999967, the price has risen 27,000%.
The crash of Terra Luna
Terra LUNA was one of the most compelling stories of the year, and LUNA’s symbiosis with the stablecoin UST allowed people to speculate on the growth of the stablecoin.
The stablecoin UST grew at an astonishing rate, and became one of the largest stablecoins by market cap.
The Terra ecosystem was backed by some of the largest and most respected figures in the industry, such as Three Arrows Capital, Celsius, and Galaxy Digital’s Mike Novogratz, who even arranged to have LUNA tattooed onto his arm (he has since reflection that the debacle was a lesson in exuberance).
The UST stablecoin lost peg a few times throughout its life cycle, but was always able to eventually reclaim $1.
As the project grew, the founder Do Kwon decided that it would be beneficial to have UST backed by something more than just LUNA and the confidence of market participants. The extent to which the project was dependent on confidence was astonishing, and once the confidence had been lost LUNA was doomed.
The algorithmic stablecoin functioned in such a way that when UST lost its peg, it created a high degree of inflation in LUNA, which pushed the price downwards.
The symbiosis of the LUNA with UST was ultimately the downfall of both, and within a few days LUNA fell 99% in price several times over.
The crash had destroyed the life savings of hundreds of thousands of people worldwide who had believed in Do Kwon and didn’t understand the risk that they were taking on.
LUNC Staking: LUNC price is recovering – is it just a dead cat rebound?
With a drop of over 99.999% from its all-time high, there is little room for LUNA’s price to fall further.
Billions of dollars had been destroyed, and there were simply weren’t many more sellers.
Nevertheless, for a community that had so much scope and support, and given the fact that blockchains themselves are very difficult to completely destroy.
In the aftermath of the collapse, LUNA was rebranded to LUNC, and the new LUNA was born, to be seemingly headed once more by Do Kwon – who still isn’t in prison.
Does Terra LUNA Classic have any future?
The Terra ecosystem was worth over $40 billion at its all-time high and LUNA price’s all-time high was at $119.
The resilience of communities is the crypto space has been evidenced not only by those who are still clinging on to LUNC, but can also be seen in segment of the Celsius community that still hopes a short squeeze can solve all their problems and somehow save the company.
It seems unlikely that the LUNC is simply going to disappear – the project reached enough of a critical mass to have become culturally significant in the crypto space, and the shared experiences that people have felt as the project has developed.
For those who wish to speculate and trade, the high volatility will provide some great opportunities, but one should be cautious to use stop losses and be responsible.
LUNC Staking: recent 1.2 % burn of tax
Some of the new changes introduced for LUNC include a 1.2% burn mechanism for swaps, designed to make LUNC inherently deflationary.
The implementation is being supported, and since is where most of LUNA’s volume is traded (over 50% in the past 24 hours) a lot of speculators are using the platform.
As a result, LUNC will likely continue to operate as an asset that can be owned through deflationary token economics, despite the complete collapse and failure of the stablecoin side of the ecosystem.
LUNC’s fully diluted market capitalization now stands at $1.8 billion. Given that the link to the stablecoin UST has been severed and it no longer suffers from the problems associated with hyperinflation, LUNC could be an interesting upside with potentially high risk upside.