- Introduction – brief background on the older LUNA & UST depegging crash – leading to creation of new LUNA and the older one renamed to LUNC
- What is Terra (LUNA)?
- What is Terra Classic (LUNC)?
- LUNA 2.0 vs LUNC: An Overview
- Terra LUNA vs Terra LUNA Classic: Technical Analysis
- Pros and cons of LUNA and LUNC
- LUNA 2.0 vs LUNC: Which one should you buy?
Investors and traders across the world are still scarred from the LUNA crash that happened early in the month of May, 2022. That was when the largest algorithmic stablecoin, UST was depegged from the US dollar. What followed next was a catastrophic erosion of value, calculated to be over $40 billion. Terra’s native token LUNA fell from $80 (~INR 6200) to practically zero.
Additional Read: Terra (LUNA) Crash Explained
Now, as an investor you must be wondering – with the crisis handled to some extent, which is the coin that you should invest in? Well, let’s take a closer look at them.
- Amid the marketwide recovery in the crypto space, both LUNA and LUNC tokens also saw significant hikes in prices. LUNA rallied by over 10% while the LUNC token saw a near 25% jump
Why are there two versions of the same token?
In the wake of Terra’s catastrophic crash, Terra founder and developer, Do Kwon came up with a proposal called Terra Ecosystem Revival Plan 2 on Terra’s developer forum.
In it, he proposed to create a new blockchain via a hard fork and distribute the new tokens among the community members based on how many UST and LUNA tokens they held.
The proposal was accepted by the validators on the network and two weeks after the crash, on 28 May, 2022 the new Terra blockchain was launched, and the new token was named LUNA while renaming the older chain as Terra Classic, with the native token assigned the code LUNC.
A QUICK ROUND-UP of Terra Crypto Crash
During the first week of May, on May 9, 2022, after a certain huge dump of the UST coins into the market by a whale, the algorithmic stablecoin that is built on top of the Terra ecosystem, lost its $1 peg. Due to the excess amount of UST tokens being available the FOMO among the crypto investors led them to sell off even more UST tokens and within a few days, the token was trading around $0.30; that is a solid 70% lower than its usual value!
The algorithm works in a way where if there is an excess of UST tokens that threatens the $1 peg, LUNA tokens are burned to keep the price at a constant $1 and vice versa. Now since the anonymous whale sold off a huge chunk of the UST tokens, there were more UST and Terra LUNA tokens in supply than there were traders to consume such a volume. The selling pressure, however, turned out to be tremendous, and UST never came close to its $1 peg.
Read more about the Terra LUNA 2.0 Revival Plan
What is Terra Classic (LUNC)?
To put it simply, it is the original token that was associated with Terra’s algorithmic stablecoin UST (TerraUSD) which was launched in 2018. When UST lost its dollar peg and collapsed in May 2022, the token fell into a hyperinflationary spiral because the algorithm that was intended to back up UST created trillions of tokens, diminishing its value by almost 100%.
Check the latest LUNC Price, chart, and data.
What is Terra (LUNA) or LUNA 2.0?
As mentioned earlier, on 28 May, 2022 – the new blockchain was officially launched with its native token now being referred to as LUNA. On the same day, some previous UST and LUNC holders received their new LUNA tokens in the first round of token distribution called an airdrop.
Check the latest LUNA Price, chart, and data.
LUNA vs LUNC: An overview
|Terra (LUNA)||Terra Classic (LUNC)|
|Founder||Do Kwon||Do Kwon|
|Current Market Price||$2.19||$0.000073|
|Market Capitalization||$279 million||$484 million|
|Circulating Supply||127 million LUNA||6.5 billion LUNC|
|Total Supply||1 billion LUNA||6.9 trillion LUNC|
LUNA vs LUNC: A look at the charts
One look at a chart like this would typically send investors and particularly traders running for their lives. The amount of value erosion that occurred in this event has been incredible, one of the biggest in the history of crypto. This was especially because of the fact that this was one of the most promising tokens. Before the de-pegging fiasco, LUNA was one of the top 10 cryptos on the list, with TerraUSD (UST) being the biggest algorithmic stablecoin out there.
However, the other side of this argument also holds true. The idea behind the Terra project is still something that holds true and if things work out – the use-cases for such a blockchain ecosystem might be endless. Hence, current oversold valuations may prove to be extremely attractive to investors and traders with high risk-taking appetites.
TERRA CLASSIC PRICE ANALYSIS: WILL LUNC PRICE HIT INR 0.01 THIS WEEK?
LUNC’s price after the crash has been trading within the bearish captivity irrespective of a couple of jumps that were nullified quickly. However, the asset has witnessed a significant upswing in the past couple of days. Therefore, the price broke out of the descending triangle and pulled a massive leg up.
The price in the short-term has formed a couple of bullish flags and hence breaking out from the recent flag, the price is expected to surge more than 20% to hit INR 0.007. However, the asset could undergo minor corrections, but maintain the bullish momentum. As the weekend approaches, the price may quickly jump in action and attempt hard to surpass INR 0.01 levels soon.
Read LUNC Price Prediction Weekly in detail.
Pros and Cons of LUNA & LUNC? Is it a Good Investment?
Now, it must be understood that both of these coins pose a huge risk, a far greater risk than buying into some of the other established cryptos. The fear, uncertainty, and doubt surrounding the entire ecosystem are still out there. Rumors of an exit scam was also abound soon after the crash.
But, if you were to look past all that, LUNA would probably be the crypto seasoned investors would consider buying into. Why? Because the future of the old Terra blockchain – including its LUNC and UST tokens – is uncertain, with little incentive to use and build any project on top of it.
But that doesn’t mean LUNA is going to touch the moon any time soon. It has a major challenge that it is yet to overcome. The new blockchain and the developers behind it would require to see how many of these numerous protocols and development teams that were working on the older ecosystem would trust them enough to shift to the new one to develop their applications.
At the end of the day, only the use cases and utilities it is able to provide will ultimately decide whether or not this blockchain project will be able to regain its lost glory once again.
HOW TO INVEST IN LUNA OR LUNC
Terra (LUNA) & Terra Classic (LUNC) can be easily bought here on CoinDCX along with the best deals in the market. Just download the CoinDCX App crypto investing app, enter the details required and wait for your profile to get verified. Once done, fund your wallet and buy Terra and/or Terra Classic. Moreover, with Crypto Investment Plan(CIP) you can invest in easy weekly installments too.
What is LUNC?
Terra LUNA Classic (LUNC) is the original token that was associated with Terra’s algorithmic stablecoin UST (TerraUSD) which was launched in 2018.
What is LUNA 2.0?
On 28 May, 2022 - the new blockchain was officially launched with its native token now being referred to as LUNA or LUNA 2.0.
Why are there two versions of the same coin?
In the wake of Terra’s catastrophic crash, Terra founder and developer, Do Kwon came up with a proposal called Terra Ecosystem Revival Plan 2 on Terra’s developer forum. In it, he proposed to create a new blockchain via a hard fork and distribute the new tokens among the community members based on how many UST and LUNA tokens they held.
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