Despite its various limitations and risks, the LUNC currency is popular among both ordinary users and huge miners. Many investors are hoping for a “revival” of LUNC and an increase in the price of the coin to $ 1, but is such a scenario possible shortly? We will try to examine this issue in the material below.
What is LUNC?
Terra is a decentralized financial transaction system that uses blockchain to replace the existing payment stack. Luna is the currency of the Terra platform. It performs three main functions:
- mining Terra transactions through stacking;
- ensuring price stability for stable Terra coins;
- providing incentives for the platform’s blockchain validators.
Terra Luna Classic (LUNC) is the initial coin of the Terra blockchain before its collapse in May. However, the blockchain developer advocated a change in strategy to capitalize on the opportunity to resurrect the project and gave the old LUNA token a new name – LUNC. The revamped and upgraded proposal was approved by the public, and the LUNC coin was released in the cryptocurrency world on May 28, 2022.
As you know, on May 5, 2022, the LUNA cryptocurrency fell in price to almost zero (0.004173 per token), after which it was rebranded with a name change to LUNC (Luna Classic). Do Kwon, the infamous CEO of Terra, launched a new LUNA network in the hope of repeating its past success, but most crypto enthusiasts lost their trust in it forever.
It was a crash for many investors. The Terra Luna Classic token only a few months later, in September 2022, began to show positive dynamics.
LUNC gained more than 60% in two weeks in September. The profit arises due to an increase in purchasing pressure on the token. Such demand for LUNC has again revived investor confidence in the project, even though in May it brought losses of more than $60 million.
A lot of experts and ordinary users are worried about will Luna Classic (LUNC) reach $1. In terms of market capitalization, the Terra Classic project is now ranked 216th. As the total supply of Terra (LUNA) is approaching $7 trillion, the question arises whether LUNA will be able to gain momentum again and reach the $1 level.
LUNA is currently trading at $0.0001611. This means that the altcoin will require clearing several zeros before it reaches $1. According to LUNA’s turnover offer, altcoin’s market value should be about $7 trillion to reach $1. Given that the whole cryptocurrency industry is worth less than $1.5 trillion, this seems impossible.
For the price to reach $1, a capitalization of more than $6 trillion is needed. Unfortunately, with so many coins issued, it is not possible to achieve such a price shortly, since the total capitalization of the cryptocurrency market is now less than $ 1.5 trillion.
Is it worth investing in LUNC or making a choice in favor of otherprojects?
The fall of the Terra Luna blockchain has forced people to critically evaluate the projects they invest in. It is importantto be able to identify any vulnerabilities in the project structure that may lead to significant investment losses in thefuture. And this is a very useful experience since there are many projects on the market. Before investing, you need tocarefully and in detail study the selected sector.
When choosing a UNC token, it is necessary to assess that the investment in the project remains over-risky.
Increased attention of regulatory authorities to projects
The decline in the USD exchange rate and the subsequent collapse of the LUNA token attracted the attention of regulators to the cryptocurrency sector. Regulatory authorities have called for a more thorough audit of projects and issuers of stablecoins. To provide detailed information about your stablecoin reserves, you need to ensure that investors participating in these assets will not be affected by unforeseen circumstances.
Of course, every investment has a risk of being lost. Especially if we are talking about the crypto project market. Before the collapse, Terra Luna LUNA was one of the ten largest cryptocurrencies by market capitalization. The May crash led to the fact that the project lost almost all of its value, falling by 100% compared to the overall maximum of about $ 110. Despite this, some managed to earn on the project and even more – those who are ready to invest now, believing in the growth of the token. The choice is always yours, approach the analysis of projects competently, and then most investments will be profitable. However, there is a strong belief among experts that this cryptocurrency does not represent the prospects and will not reach 1$.
The post Will Luna Classic (LUNC) reach $1? appeared first on CoinChapter.