Have you heard about the Terra blockchain crash of 2022 but still find yourself scratching your head wondering – what exactly is Terra Classic (LUNC)? With the crypto world constantly evolving and new projects launching every day, it can be hard to keep up. But fret not, this article is here to break down everything you need to know about LUNC coin in easy-to-digest sections.
By the end, you’ll have a firm understanding of what Terra Classic is, how its original goal differs from today, and whether it has any potential value moving forward. Let’s get started!
What is the purpose of Terra Classic (LUNC) coin?
The Terra blockchain and its stablecoin TerraUSD (UST) were originally launched back in 2019 with lofty goals. Terra’s native token, then called LUNA, was designed to maintain UST’s 1:1 dollar peg through an algorithm that created and burned tokens based on UST’s trading price.
If UST slipped below $1, arbitrage traders could swap it for LUNA which would then be burned, and vice versa if UST rose above $1. This was meant to keep UST stable. Things fell apart in May 2022 when UST losing its peg triggered a bank run that wiped out LUNA’s value.
How does Terra Classic (LUNC) crypto work?
In the aftermath of Terra’s crash, the original blockchain continued operating but was rebranded Terra Classic while LUNA became LUNC. Unlike its original purpose of maintaining UST’s peg, LUNC now functions as the main currency for Terra Classic.
Transactions on the network are recorded on a public ledger and pay transaction fees in LUNC. The coin can be traded on exchanges and even earned through mining or staking depending on the exchange. The goal now is just to support the existing Terra Classic network rather than stabilizing UST.
Does Terra Classic (LUNC) token have a future?
After such a catastrophic crash that destroyed billions in value, some believed Terra Classic was doomed. But against all odds, an active community has formed around LUNC that aims to create use cases and give it resiliency.
Through token burns on trades, over 68 billion LUNC coins have been permanently removed from circulation. This reduction in supply combined with regular exchange burns has helped push LUNC’s price up from its all-time low of $0.00001675. Only time will tell if these efforts can sustain long-term success or if LUNC is surviving on momentum alone.
When Terra Classic (LUNC) coin launched?
While LUNC inherited the original Terra blockchain created in 2019, it can be said to have truly “launched” in May 2022 following the catastrophic crash. This is when Terra’s founder Do Kwon announced the project would hard fork, with the original chain renamed to Terra Classic and LUNA token becoming LUNC.
So to specifically answer – LUNC coin launched on May 28, 2022 after the network split from the new Terra blockchain. Prior to that, it was simply known as LUNA and played a very different economic role to maintain UST’s stability. Quite a journey for a coin now just trying to survive.
Is Terra Classic (LUNC) crypto a scam?
It would be unfair to call Terra Classic an outright “scam” since its community and supporters do seem genuinely invested in developing the project going forward. However, some caution is warranted.
The disastrous crash that preceded LUNC was a huge red flag, and its creator Do Kwon is now wanted by South Korean authorities. As a coin born from such a volatile event rather than an organic emergence, LUNC faces an uphill battle to regain trust.
Time will tell if activities like burns can sustain it, but investors should only put in what they can afford to lose and make their own judgment based on research. As with any high-risk investment, there are no guarantees with LUNC.
Is it safe to invest in Terra Classic (LUNC) token?
All cryptocurrency investing inherently carries risk. Given LUNC’s tumultuous beginning and lack of proven long-term use case or growth, it must be said it is one of the riskier crypto bets one could make. Its long-term potential is also difficult to predict.
That said, risk-tolerant investors may find LUNC appealing for its potential volatility and reward. As long as responsible investing practices are followed like only allocating spare funds and diversifying a portfolio, dabbling in high-risk assets like LUNC can potentially pay off. Just do proper research first before diving in!
As the saying goes – only invest what you’re willing to lose. For most, LUNC is too speculative to comprise a major portion of one’s holdings. But as a small gamble on a project with a fighting community, it may interest certain cryptocurrency traders and gamblers. Consider your risk profile carefully. For updates on LUNC price and news, traders can get fast crypto updates on EXEcrypto.
Is Terra Classic (LUNC) coin worth it? LUNC Price 2023
Given LUNC’s turbulent past, its true worth is challenging to assess. However, by following price trends into 2023, we may get hints as to its value potential. After bottoming out at fractional cents, LUNC climbed back above $0.0001 by late 2022. However, LUNC has failed to maintain this value and is trading around $0.000057 in an ongoing long-term downtrend.
Some projections see it potentially reaching $0.0005-$0.001 within a year if burn activities like those on major exchanges can tighten supply significantly. Much depends on external market conditions too. A crypto winter could sink many projects, but renewed bullishness may boost even unlikely players like LUNC.
LUNC remains a highly speculative investment. Most experts advise treating any investments as money that can be forgiven rather than expected to generate large returns. For thrill-seeking traders, LUNC offers volatility, but cautious investors may find larger upside elsewhere. Do diligent research and trade carefully.
Where to buy Terra Classic (LUNC) crypto?
The most popular cryptocurrency exchanges where investors can purchase LUNC include Binance, OKX, KuCoin, Gate.io, and Crypto.com. As one of the largest crypto exchanges by volume, Binance sees the most liquidity for LUNC pairs against coins like BTC, ETH, and USDT.
Users will first need to register on the chosen exchange, verify identity, and deposit fiat or crypto funds into their account. Once logged in, search for the LUNC/USD, LUNC/BTC or desired pair and place a market buy order. Most exchanges also allow limit orders for more control over entry prices.
Withdrawals work similarly, with LUNC tokens transferred to your personal wallet address. Be sure to choose a trustworthy exchange and read reviews from fellow investors before depositing any money. Security and uptime are important criteria.
How to sell Terra Classic (LUNC) token?
When the time comes to sell your LUNC holdings, the process largely mirrors that of buying. Log into your preferred exchange where LUNC is listed and head to the wallet section. Here you’ll see your balance of tokens and be able to place a sell order.
Unlike with stock brokers, cryptocurrency exchanges let you trade 24/7 as long as liquidity exists. Browse the order books and input either a market sell to offload coins immediately at the best available price, or set a limit order if hoping to sell at a specific higher target.
Once the order fills, your LUNC tokens will be removed from your exchange wallet and your available balance in the chosen crypto or fiat currency will increase based on the sale. Withdraw those new funds when ready. To guarantee the lowest possible fees, research which trading pair has the tightest spreads.
How to stake Terra Classic (LUNC) coin?
Staking crypto allows holders to earn passive income from securely validating network transactions. With LUNC, staking options exist but support depends on individual exchanges – centralized staking yields the most guidance below:
Binance – Binance offers staking pools where users delegate LUNC to earn variable APY shown on the earn page. Requires a minimum stake and coins stay on exchange. Rewards paid in LUNC.
KuCoin – Smaller KuCoin LUNC pools offer 6-10% APY paid monthly. Low minimum stakes of 5,000 coins. Funds locked during periods but remain under your control.
Do diligent research, compare rates and read all terms before choosing How to lock up any crypto long-term via staking.
How to mine Terra Classic (LUNC) crypto?
It is actually not possible to mine LUNC tokens through conventional mining like with Bitcoin. LUNC utilizes a delegated proof-of-stake (dPoS) system where block validators are elected to process transactions and mint new coins through stake voting.
While specialized mining rigs are redundant for LUNC, enthusiasm remains high among its passionate community. The easiest way ordinary users can participate in securing the network is by delegating their staked coins to trusted validator nodes. This allows others to do the technical work while coin holders still earn network fees.