After having been subject to controversy for a long time, the LUNC crypto is gradually regaining the heart of the crypto-sphere. For almost two months, the cryptocurrency has continued to achieve performances that we have not seen since 2022. But how far will it go?
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LUNC: what is this crypto used for?
Terra Classic (LUNC) , formerly known as Terra ( LUNA ) is the native cryptocurrency of the Terra blockchain which collapsed in mid-2022. As a reminder, the latter was co-founded by Do-Kwon,a former South Korean businessman and software engineer.
Terra was designed to power an ecosystem of stablecoins, with the goal of creating more accessible and efficient blockchain applications.
The main function of Terra Classic is to maintain the value of the USTC stablecoin, another crypto in the Terra ecosystem. LUNC also functions as a multi-chain digital asset, integrated into several major blockchains such as Ethereum, Polygon, Solana and the BNB Chain.
Additionally, one of the most distinctive aspects of the Terra Classic is its open, community-based nature. In fact, LUNC holders can participate in decisions that concern updates and changes to the Terra network. Likewise, like all other cryptos, LUNC can be staked in order to participate in the validation of transactions on the blockchain.
The recent rise in LUNC on the markets
Terra Classic (LUNC) is once again attracting investor interest. During the month of November alone, the crypto came away with an increase of more than 200% in its value. This rise can be attributed to several key factors, among which Binance’s influence plays a leading role.
Binance, as one of the largest crypto exchanges in the world, announced on December 6 the introduction of new trading pairs for LUNC. This stimulated market interest, contributing to a rapid increase in its price. This move by Binance not only expanded access and liquidity for LUNC, but also served as validation for crypto in a competitive market.
Another crucial element in this rise was Binance’s decision to decommission a significant amount of LUNC tokens. This process of “burning” cryptos, reducing the total supply of LUNC in circulation, had a positive effect on the value of the currency. By decreasing supply while maintaining or increasing demand, the price of LUNC naturally increased.
As I write this, the crypto market cap is estimated at around $1.30 billion . Over the past 7 days, LUNC has seen an increase of around 86% and is currently trading around $0.0002201.
So what should we hope for in the future for this crypto?
Given the current hype prevailing on the markets, everything suggests that crypto is in a good position and could well continue its momentum. According to forecasts from Bitcoin Wisdom , on average, the crypto could easily close the year around $0.00033 .
But for Price Prediction, LUNC can get away with a best-case scenario of around $0.000257 at the end of this year. Likewise, current project managers are increasingly optimistic about the future of the LUNC crypto. As we learn from Bein Crypto, Terraform Labs recently invested around $15 million in certain projects in the Terra Classic ecosystem .
This influx of funds aims to bring enough liquidity into the Terra ecosystem. Thus, this will enable users to purchase and trade quality assets and encourage developers to create innovative and successful DeFi applications.
However, with this increase, the LUNC community, the Luna Classic Community on X, also wants to be vigilant. Indeed, in a recent post published on her page, she advised her members to also take profits during this rise in LUNC!
But where is Do Kwon? Is he in prison?
After Terra’s collapse, its co-founder Do-Kwon was widely criticized for his handling of the crisis. American justice accuses him of having misled investors about the stability and security of the cryptos Terra (current LUNC) and TerraUSD (current USTC).
Before we learned of the collapse of his company, Do-Kwon had already left South Korea, then Singapore in 2022. Even if he was able to escape the Korean authorities for a certain time, it was in Montenegro that we was finally able to get her hands on him. He is currently in the hands of Montenegrin justice and awaiting extradition to the USA where he will be tried.
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First published in ActuFINANCE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.
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