What is Terra Luna Classic?
Luna Classic (LUNC) is the native token of the original Terra LUNA blockchain. After the Terra collapse, Do Kwon planned a recovery strategy that included building a brand-new chain where all future transactions would occur.
The Terra and Luna Classic chains were created from the old chain. The new chain is called Terra (also referred to as LUNA 2.0), and the native token of the original Terra blockchain is LUNC.
The term "classic" likely refers to the hard fork between Ethereum and Ethereum Classic following Ethereum's 2016 decentralised automated organisation (DAO) breach. This is just another ploy to depict the UST crash as "Terra's DAO hack moment".
Why are there two versions of Terra?
Do Kwon and Daniel Shin introduced the original blockchain in January 2018, and the LUNA ICO began at the beginning of 2019.
The TerraUSD (UST) stablecoin, along with its sister token Luna, crashed in early May 2022 after losing its peg to the USD. Additionally, it brought down the entire cryptocurrency market, introducing the start of crypto winter.
Do Kwon created a recovery plan for the blockchain that stipulates that the blockchain will go through a hard fork and split into two chains, and the new chain won't have any stablecoin.
On May 25, 2022, the blockchain validators approved the plan and, on May 28, Terra 2.0 launched.
LUNA is Terra 2.0's native token. Meanwhile, the original blockchain has been renamed Terra Classic, and its native token is LUNC.
The Luna hard fork
Do Kwon proposed a hard fork to revive the network after the entire ecosystem collapsed. When two chains split from the original chain, this is referred to as a hard fork. The new and old versions remain functional, but they no longer interact with one another.
Terra Classic is a tribute to Ethereum Classic, created after the Ethereum DAO hack that split Ethereum in two in 2016. Terra 2.0's ecosystem no longer includes any algorithmic stablecoins, and holders of the original LUNA token received new tokens via airdrop. The new tokens were distributed via airdrop to Luna Classic holders, stakers, residual UST holders, and app.
Where to purchase Terra Luna Classic?
Luna Classic is available on many cryptocurrency exchanges. These include, for instance, Binance, KuCoin, FTX, and Kraken. Most of the crypto exchanges supporting Luna 2.0 will continue to support LUNC.
Some owners increased their purchases of LUNC in the run-up to the new chain. Existing token holders received a share of the new tokens that were part of the airdrop. This implies that all current owners of LUNC are now owners of Luna 2.0.
However, trading in LUNC was suspended before the debut of the new chain. It was stated in the Binance Luna 2.0 support announcement that LUNC trading would resume on May 30.
Price prediction for Terra Luna Classic
Due to the bearish token and crypto market, the price remained at a low of $0.0001 for several months after rebranding. LUNC, on the other hand, rallied after its tax burn proposal was approved and went live on September 21, 2022. The tax consumed 1.2% of all blockchain transactions, reducing LUNC supply while increasing demand.
Binance's announcement on September 26, 2022, to burn all trading fees on LUNC spot and margin trading pairs boosted the price of LUNC even further. Within a few hours, the LUNC price increased by more than 60%, from $0.00018 to $0.0003.
Despite its history of implosion, the recent good news has left many crypto experts relatively optimistic about Luna Classic's future.
According to DigitalCoinPrice, the price of LUNC will rise over the next five years and reach around $0.0012 by 2025. However, they do not expect the price to rise significantly in the coming decade.
LUNA Classic's future
There's no denying that the original blockchain crash in May 2022 shook many investors' and crypto enthusiasts' confidence. People quickly questioned Terra's ability to return.
The Terra Classic blockchain has shown promise since the fork. The coin has gained traction, notably since Binance announced the LUNC tax burn on its transactions. This indicates that the value of LUNC may rise in the coming years.
However, INTERPOL has reportedly requested that law enforcement agencies locate and arrest Do Kwon. Terraform Labs, the development firm behind Terra, has also been accused of operating a Ponzi scheme. As a result, it's difficult to predict whether LUNC will succeed or crash.
However, it is an intriguing cryptocurrency to follow, and you should keep an eye on it for future developments.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.