Terra Classic

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Discover Terra Classic's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Terra Classic?

Terra Classic (LUNC) is the original native governance token of the Terra ecosystem. It was previously known as Terra (LUNA) before the UST/Luna collapse and the establishment of a new Terra chain. LUNC is a Proof of Stake blockchain network token that was used for staking, governance, and minting stablecoins. Despite losing significant value after the collapse, it still retains a use case as a payment token within the Terra ecosystem, with a native burn mechanism that could support its price over time.

How is Terra Classic used?

Terra Classic (LUNC) is the native token of the Terra Classic blockchain. It serves several purposes within the ecosystem:

  1. Staking and Governance: LUNC is used for staking and governance on the Terra Classic blockchain. Users can stake LUNC to validate transactions and participate in governance decisions.

  2. Payment Token: Despite the collapse of the Terra ecosystem, LUNC still retains a use case as a medium of exchange within the Terra Classic ecosystem. Many companies, projects, and decentralized applications (DApps) remain active on Terra Classic, using LUNC as the native currency for transactions.

  3. Native Burn Mechanism: A portion of all transaction fees on the Terra Classic blockchain are burned, permanently removing LUNC from circulation. This built-in deflationary pressure could support the price of LUNC over the long run.

These functions provide LUNC with a degree of fundamental price support and utility within the Terra Classic ecosystem.

How do I store Terra Classic?

To store Terra Classic (LUNC) tokens, you have several options:

  1. Terra Station Wallet:

    • Connect your Terra Station wallet to the Terra Staking Portal.
    • Select a validator from the list by clicking on their name.
    • This method allows you to stake your LUNC tokens securely.
  2. Ledger Hardware Wallet:

    • Install the Terra app on your Ledger device.
    • Use a third-party wallet like Terra Station to manage your LUNC tokens.
    • Ensure you have the correct app installed, as searching for "LUNC" might not yield the correct result; instead, search for "Terra".
  3. KuCoin Wallet:

  • Access your KuCoin account and navigate to the wallet section.
  • Find LUNC in your assets and deposit it into your KuCoin wallet.
  • Use a strong password, two-factor authentication, and keep your wallet software up to date for secure storage.

These methods provide secure and user-friendly ways to store your Terra Classic tokens.

How to buy Terra Classic?

To buy Terra Classic (LUNC) tokens, follow these steps:

  1. Choose a Cryptocurrency Exchange:

    • Select a reliable exchange like Uphold, Binance, KuCoin, CoinEx, OKX, Bybit, or gate.io. Each exchange has its own features, fees, and security measures, so research and compare them before making a decision.
  2. Create an Account:

    • Register on the chosen exchange's website or mobile app. Provide the required personal information, including your name and email address. You may need to complete Know Your Customer (KYC) verification to increase withdrawal limits and unlock additional features.
  3. Add Funds:

  • Deposit funds into your exchange account using various methods such as:
    • Credit or debit card (Visa and MasterCard are commonly supported).
    • Bank transfer (EU and UK bank accounts are supported on Uphold).
    • External crypto wallet (deposit crypto you already own and trade it into LUNC).
    • Third-party payment services (available on Binance).
  1. Make a Buy Order:

    • Navigate to the Terra Classic (LUNC) page on the exchange.
    • Choose whether to use a Market Order or a Limit Order:
      • Market Order: Buy LUNC at the current market price.
      • Limit Order: Set a specific price at which you want to buy LUNC.
    • Enter the amount you want to buy and confirm the transaction.
  2. Store or Use Your LUNC:

    • Store your LUNC in the exchange's wallet or transfer it to a non-custodial wallet for added security.
    • You can also trade LUNC for other assets, stake it for passive income, or hold it in your exchange account.

Remember to always follow the specific instructions and guidelines provided by the exchange you choose, and be aware of the risks associated with investing in cryptocurrencies.

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History of Terra Classic

Terra Classic, also known as LUNC, is the native token of the original Terra ecosystem. The Terra project was created in January 2018 by Do Kwon and Daniel Shin with the goal of facilitating the mass adoption of cryptocurrencies by creating a decentralized blockchain-based payment network. The project aimed to bootstrap a blockchain payment network to a large scale, similar to how large payment networks like Alipay and PayPal were instrumental in the growth of e-commerce platforms.

Early Success and Collapse

The original Luna token (LUNC) experienced significant growth, rising from less than $1 in early 2021 to around $116 in April 2022. This growth was largely driven by the promise of a 20% annual yield on the Anchor lending platform for staking UST holdings. However, the token's value plummeted to a fraction of a penny before the rebranding to Terra 2.0.

Rebranding and New Coin

On May 25, 2022, a proposal was approved to reissue a new LUNA cryptocurrency and decouple from the devalued UST stablecoin. The original blockchain was renamed Terra Classic, and the original LUNA token became LUNA Classic (LUNC). The new LUNA coin, also known as Terra 2.0, lost valuation shortly after its listing on exchanges.

Burn Movement and Governance

Following the collapse, the Terra Classic community initiated a burn movement to reduce the supply of LUNC and UST tokens. This movement aimed to stabilize market prices and repeg the UST stablecoin. As of June 1, 2024, a total of 116 billion LUNC have been burned, with 45.9 billion burned through on-chain taxation. Binance is the largest burner, responsible for removing 60.4 billion LUNC from the supply.

Current Status

As of June 11, 2024, the live Terra Classic price is $0.0001031 USD with a 24-hour trading volume of $28391774.12 USD. The market capitalization stands at $602,043,477, and the circulating supply is 5,798,342,712,184 LUNC.

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How Terra Classic works

Terra Classic (LUNC) is the original native governance token of the Terra blockchain, created to stabilize the price of the UST stablecoin through an algorithmic mechanism. Here's how it works:

Algorithmic Stablecoin Mechanism

LUNC was designed to serve as a twin token to absorb any price deviation of the blockchain's algorithmic stablecoin, TerraUSD (UST). UST was supposed to maintain its price pegged to the U.S. dollar by creating (minting) and destroying (burning) UST tokens to balance the stablecoin's supply and demand at a $1 price peg. When UST lost its dollar peg and collapsed in May 2022, the token fell into a hyperinflationary spiral, causing the value of LUNC to plummet.

Minting and Burning Mechanism

The algorithmic mechanism allowed users to burn LUNC to mint UST tokens or tokens tied to their local fiat currency. This process was intended to maintain the stablecoin's peg to the dollar. However, the collapse of UST led to the creation of trillions of tokens, diminishing the value of LUNC by almost 100%.

Native Burn Mechanism

One key benefit of LUNC is that it has a native burn mechanism built into its code. A portion of all transaction fees on the Terra Classic blockchain are burned, permanently removing LUNC from circulation. This built-in deflationary pressure could support the price of LUNC over the long run. As long as the Terra Classic blockchain processes transactions, LUNC’s supply will slowly but steadily reduce over time.

Current Role and Potential Use Cases

Despite the collapse of Terra, LUNC still retains a use case as a medium of exchange within the Terra ecosystem. Many companies, projects, and decentralized applications (DApps) remain active on Terra Classic, using LUNC as the native currency for transactions. For example, MoonPay (cryptocurrency payment processor), Everpedia (peer-reviewed encyclopedia), and IQ Cash (Play-to-Earn gaming) continue to use LUNC for payments and in-game items/upgrades.

Future Prospects

The future of LUNC is uncertain, but its native burn mechanism and potential role as a payment token within the Terra ecosystem could provide some fundamental price support. If economic activity and total value locked (TVL) gradually return to Terra Classic, LUNC could see increasing use as a payment currency within this ecosystem.

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Terra Classic's strengths

Terra Classic (LUNC) has several strengths that contribute to its potential growth and stability. One significant strength is its ability to show resilience and strength despite facing significant challenges. For instance, after the collapse of its stablecoin UST and the subsequent rebranding, the Terra community has been actively working to revive LUNC by burning tokens to ensure scarcity and retain value.

Another strength is the increasing optimism among analysts and the community. Crypto analyst Alex has expressed bullish sentiments, stating that LUNC is gaining energy for its next move and looks incredible. This optimism is reflected in the Fear & Greed Index, which currently stands at 75, indicating greed and a potential upward trend.

Additionally, Terra Classic's technical indicators suggest a potential increase in value. The Relative Strength Index (RSI) has risen past the 50.00 midpoint, indicating a bullish trend. The 50-Day SMA and 200-Day SMA also suggest a potential upward movement.

Lastly, Terra Classic's blockchain protocol, which utilizes stablecoins to power global payments, has the potential to create a new financial infrastructure. This focus on algorithmically stabilized stablecoins pegged to various fiat currencies could provide a strong foundation for the token's growth.

Terra Classic's risks

Terra Classic (LUNC) is associated with several risks that investors should be aware of. The current high volatility in trading prices on the Bitkub Exchange platform can lead to significant losses for investors. The coin has been experiencing a downward trend, dropping from its peak at $0.0002 to the current trading value of $0.00009972, representing a substantial 64.5% decrease, indicating strong selling pressure in the market.

The formation of a bearish pennant pattern on the daily time chart suggests that sellers are gaining momentum, which could lead to a further loss of around 30% if the bearish trend continues. Additionally, the correction trend breakdown below the 78.6% Fibonacci retracement level reflects the weakening of buyers' conviction in this asset.

Investors should also consider the impact of market dynamics and external factors, such as the crash of the UST stablecoin, which significantly affected the sustainability of investments in LUNC and LUNA. Understanding these risk factors is crucial for making informed investment decisions.

Furthermore, some experts predict that Terra Luna Classic may not be sustainable in the long term due to market factors, demand dynamics, and blockchain protocol stability. Overall, the risk factors for investing in LUNC are high, and investors should exercise caution and careful consideration before making investment decisions.

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Did Terra Classic raise funds?

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Terra Classic’s team

  • Kevin H.: Team member at Terra Luna Classic (LUNC).
  • The Vinh Nguyen: Team member at Terra Luna Classic (LUNC).
  • Fabio Rodrigues: Team member at Terra Luna Classic (LUNC).
  • Sook Jin Goh: Team member at Terra Luna Classic (LUNC).

Whalee AI

The fundamental analysis assistant for crypto value investors.

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