Terraform Labs CEO and co-founder Do Kwon [has been arrested in Montenegro](/news/article/do-kwon-hiding-in-serbia). He oversaw the multi-billion dollar collapse of the TerraUSD-LUNA ecosystem and has been [charged with fraud](/news/article/terraform-labs-accused-of-fraud-by-sec) by US prosecutors.

## Do Kwon arrested: Series of events

In early 2023, Do Kwon and Terraform Labs [were accused of](/news/article/do-kwon-red-notice) "orchestrating a multi-billion dollar crypto asset securities fraud", with eight charges announced against him by US prosecutors.

He was arrested on 23 March in Montenegro, travelling under a false name and in possession of fake documents. South Korean authorities released a separate arrest warrant for him in September 2022. They were at the scene to confirm his identity through official fingerprint records.

## Do Kwon arrested: Why did the TerraUSD-LUNA ecosystem collapse?

The Terra ecosystem was created in 2018 by Terraform Labs and is largely known for its decentralised algorithmic stablecoin, TerraUSD (USD), and reserve asset cryptocurrency, Luna (LUNA). The (now defunct) algorithmic stablecoin system is simple to understand:

•	1 UST = $1 LUNA.

•	If UST<$1, burn UST and mint LUNA. Burning will raise UST's price.

•	If UST>$1, burn LUNA and mint UST. Minting will decrease UST's price.

What [made this system a Ponzi scheme](/news/article/terra-luna-collapse) was the unsustainable interest rate of nearly 20% offered upon staking UST on the Anchor Protocol.

## The system was built to fail.

Upon shifting from a fixed interest model to a dynamic one, UST began its downfall on 7 May, 2022, when a UST whale sold an enormous amount of the stablecoin.

To compensate for the de-pegging of UST, mass burning of the stablecoin began, leading to a surplus of LUNA on the open market. Both cryptocurrencies collapsed and more than $40B in UST-LUNA market value was wiped out. Even a $3.5B Bitcoin reserve fund failed to control the downslide of the value of both crypto tokens.

In a nutshell, the model was based on minting an endless supply of LUNA to maintain UST at $1 and keep investors happy with an unsustainable interest rate model.

It should be noted that Do Kwon and the algorithmic stablecoin system were called out by a renowned economist Frances Coppola well before all this unravelled. Do Kwon mocked her publicly.

![dokwon.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/dokwon_f0af2d76e8.png)
 
Source: [Twitter (@stablekwon)](https://twitter.com/stablekwon/status/1410491186196795398?s=20)

I hope that [Do Kwon’s arrest is one step](/news/article/do-kwon-terra) towards a safer and better crypto space for all.


do kwon beind bars in montenegro with red filter

Terraform Labs CEO Do Kwon Arrested

[Luna Rush](https://doc.lunarush.io/) is a simple hanging-up [game](https://lunarush.io/) in the anime style. It is an incremental game about strategy, with each character meticulously crafted.
Flamboyant effects and the ultimate weapon are sure to hook players! Users can summon their warriors, train them to become mighty heroes, or evolve them into spirit material.

Users may send their team on a mission to kill formidable bosses, engage in solo fights, and compete in a competitive tournament with other masters to gain special prizes. In the game, users may command their warriors to combat other players, kill bosses, and even compete in tournaments to win exclusive NFT stuff.

Players can play to enjoy themselves while making real money with their talents. They can earn their assets in-game by selling, purchasing, renting, and swapping their NFT assets on the Marketplace.

Users may use their tactics and luck to combat other players, team up with friends, win a tournament, and earn money.

Other details include:

•	There are 11 distinct warriors, each with their own unique set of skills. To improve the warrior's strength, fusion and level-up are required, as well as learning new skills and providing additional weapons. Warriors can be bought on the market or summoned through the game shop.

•	Warrior levels will be defined according to rarity, ranging from common to rare, elite to epic, and legendary to mythical. Gamers can eventually unite soldiers of the same type or rarity. If the union is successful, the warrior's rarity will grow. Furthermore, once the player gains enough experience, the warriors will level up, unlocking new skills.

•	Passive skills, stat boosters, supers, and talents are the four warrior skills. Players may equip their warriors with weapons in addition to skills. Weapons are classified into five types: fast weapons, heavy weapons, long weapons, thrown weapons, and sharp weapons.

•	To acquire tokens, players engage in Boss hunting, PVP fights, everyday activities, tournaments, and leaderboard, to earn tokens.

•	Frejlord, Zaun, Piltover, and Nomia are among the 6,000 diverse lands. Each one has a unique location and set of traits. As the landowner, the player can rent it out to others for a charge during the mission.

•	The creators included a Guild feature in the game to foster a stronger community. Players may interact with others at Guild to organise the community and produce value. In addition, participants will have access to the Guild Shop, which will contain special items.

•	The creators are thinking of adding a Metaverse. In the universe, players may combine assets from other galaxies and vice versa.

•	LUS is a 350,000,000 pre-mined coin that serves as the governance token.

•	Play to earn.

## Luna Rush token

LUS is the native token of the game, launched on the Binance Smart Chain. To acquire LUS tokens, players may engage in boss hunting, PVP fights, daily activities, tournaments, leaderboards, and bets. Furthermore, Luna Rush token holders can participate in platform governance and vote on its future growth.

In the last seven days, the price of LUS has increased by 92.99%. In contrast, the price has dropped by 3.13% in the previous 24 hours. According to reports, the coin is currently worth $3.690592.   

## How to purchase LUS?

Although Luna Rush is not currently accessible on Coinbase, customers may [obtain](/news/article/best-farm-games-2022) LUS tokens on the PancakeSwap market. Here's how to acquire Luna Rush cryptocurrency:

1.	Purchase BNB (through an exchange).

2.	Navigate to the PancakeSwap website and link the wallet.

3.	Copy the Luna Rush coin address from the CoinMarketCap website.

4.	Copy the address and choose the Luna Rush token.

5.	Enter the amount to be swapped and press the Swap button.

## The core team 

[Luna Rush](https://remitano.com/learn/gh/post/25983-discover-luna-rush-new-hidden-gem-a-vietnam-blockchain-game) is the outcome of collaboration between Helios, VNDC, BAS, monihub, and JC. It took almost a year to come up with ideas and develop them. Helios Entertainment's first product, Werewolf Voice, a mobile board game, was released in 2018. Werewolf Voice has received more than 10 million downloads, primarily in Vietnam and Thailand.

The key members have prior technology, marketing, and community-building expertise. The company has the benefit of building a solid community that will support the project in the long run.

On Binance Smart Chain, the creators released LUS. The idea proved to be an appealing enterprise for investors and industry specialists. The firm behind the game and token has established relationships with several companies, including Remitano, MH Ventures, BSC Station, and Senspark Ventures.

## Tokenomics

According to the creators, the overall quantity of LUS will be set at 350,000,000 tokens. One of the project's benefits is that the total supply will always be at most 350 million tokens.

Unlike many other games, the initiative promises investors that there will be no growing inflation. Furthermore, according to the creators' roadmap, by the 35th month following the game's release, 100% of the total quantity of LUS will be in circulation on the market.


luna rush gamefi play to earn game logo over purple image of sci fi world

Luna Rush - A Gem of a Game

The Luna coin news latest reveals that Do Kwon, the founder of collapsed Luna and TerraUSD tokens, and his company Terraform Labs problems are far from over.

In Singapore, 350 investors impacted by the collapse of UST consequently issued a [lawsuit](https://s.wsj.net/public/resources/documents/221028-HCOC2472022-StatementofClaimdated23.09.2022.pdf) against Kwon seeking [$57 million](https://www.investing.com/news/cryptocurrency-news/do-kwon-faces-57-million-fraud-lawsuit-by-terrausd-investors-2926118) in compensation.

In South Korea, prosecutors have frozen assets worth $92 million affiliated with the Terra tokens. The seized assets were taken from Kernel Labs, a tech firm closely related to Terraform Labs.

South Korean authorities issued an arrest warrant for Do Kwon on charges including fraud and market manipulation. His location is still unknown.

## Luna coin's history

Before looking at the Luna coin news latest, let's take a look back. The coin’s history begins in 2019 when it was launched by Terraform Labs, a company founded by Do Kwon and Daniel Shin.

It was created to be the native token of the Terra blockchain. It had several use cases in the Terra network. Holders could use it as a method of payment and vote on network changes. It could also be staked for staking rewards.

It entered the crypto market worth $1.31. A year later, its value was still below $10. However, things would quickly take a turn for the better in 2021.

On 4 October, after the launch of the Columbus-5 Mainnet upgrade, it reached its first all-time high of $49.45. On 27 December, it recorded its highest value of the year, trading at $103.33 per coin.

It began 2022 on a high note reaching a new all-time high of $119.18 on 5 April. However, it would suffer a substantial loss on 6 May, dropping to trade at $82.94 per coin. By 13 May, it had fallen to trading at an all-time low of $0.00001675.

May marked the end of the cryptocurrency, once one of the most successful decentralized finance coins. It was a coin that had been ranked as the seventh largest cryptocurrency by market capitalization by Coinmarketcap.

## TerraUSD (UST)

[TerraUSD](/news/article/terra-usd) was a stablecoin operating on the Terra blockchain. Unlike other stablecoins, it was an algorithmic stablecoin that used LUNA coin to maintain its peg to the US dollar. It was not backed by an actual dollar, but by an algorithmic stablecoin.

UST coins were created by burning LUNA coins. They could also be swapped for LUNA. How the two coins worked was if the value of UST went above $1, the equivalent value of LUNA would be burnt, therefore minting more UST, making it less valuable. However, if the price of UST dropped below $1, they would be swapped for LUNA, making UST valuable. The two coins relied on each other for stability.

The relationship between the two cryptocurrencies had them both crashing when UST lost its peg to the US dollar.

## The market crash

On 7 May, 2022, more than $2 billion worth of UST was unstaked from the Anchor protocol, a decentralized money market built on the Terra blockchain. Hundreds of millions worth of the unstaked stablecoin was later quickly liquidated. This resulted in UST dropping in price from $1 to $0.91.

Once the huge amount of UST had been offloaded, the stablecoin started to depeg. Investors started to panic, and many of them sold off their UST, resulting in the minting of more LUNA coins, increasing its public circulation.

## After the crash

The UST crash had a devastating effect on the crypto market. The price of Bitcoin fell to $26,000, down 60% from its November 2021 peak. Ether, the second largest cryptocurrency, lost 30% of its value. Coinbase, one of the largest crypto exchanges, reported a loss of $430 million in its first quarter.

Do Kwon, the Chief Executive of Terraform Labs, tried to salvage the situation by proposing a burn of UST via a tweet on 11 May, 2022. The community passed the proposal, but the burning was not a success. It attempted to burn more UST than existed.

On 13 May, Do Kwon proposed another plan to create a new blockchain and leave behind the failed stablecoin. The community accepted the plan, resulting in a new blockchain and cryptocurrency called Terra 2.0 and Luna 2.0.

## LUNA 2.0

It is a new version of the old LUNA coin. It lives on the new Terra 2.0 blockchain and was created to compensate those who suffered heavy financial losses after the TerraUSD crash. It also provided a way for the Terra network to try and recover from the devastating market crash.

The token was released to the public on 28 May, 2022. It started trading at an impressive price of $18.98 and briefly spiked to $19.45 within the first hour of trading. However, by the end of May, it dropped to trading at $8.88. For the rest of the year, it traded between $2 and $1.

It began 2023 worth $1.26, and is currently trading at $2.09. According to [Coinmarketcap](https://coinmarketcap.com/currencies/terra-luna-v2/), it is the 93rd largest cryptocurrency by market cap, valued at $305,627,338. 

The coins have a max supply cap of a billion coins. There are currently 202,010,814 of them in public circulation. They have already been listed on several crypto exchanges for purchase, including Binance, KuCoin, and Crypto.com.

LUNA 2.0 differs from its predecessor in that it does not rely on any stablecoin, algorithmic or not, for stability.

## Luna Classic (LUNC)

[LUNC](/news/article/luna-classic-news-future) is the old Terra blockchain's native token. The blockchain is now called Terra Classic. The token maintains all the properties of the original Terra Luna coin.

After the hard fork, LUNC began trading at $0.0001206 per coin. By the end of May, it was worth $0.0001147. By mid-June, it dropped to trading at $0.00006177. Once in a while, it made some slight price appreciation but not enough to warrant attention. It ended 2022 worth $0.0001452.

It began 2023 worth $0.0001451. It is currently worth $0.0001852. According to [Coinmarketcap](https://coinmarketcap.com/currencies/terra-luna/), it is the 53rd largest cryptocurrency by market cap, valued at $1,107,506,959.

While many people may have lost faith in the cryptocurrency, it is still listed on several crypto exchanges for those who wish to invest in it. Some places to buy the cryptocurrency include Binance, Bybit, Deepcoin, OKX, and Bitrue. The coin has a max supply cap of more than six trillion.

## LUNA 2.0 and LUNC compared

So far, LUNC and LUNA 2.0 are doing pretty well price-wise. The coins are on a positive trajectory, and some investors are a little optimistic about them.

However, Luna coin news latest reveals that LUNC is doing much better than its new version. LUNC price performance has been doing well because of the recent burn.

The LUNC burn is a move that was passed by the coin’s community to try and save its ecosystem and restore its price.

The new Terra Classic blockchain where LUNC lives has a unique coin burn feature designed to reduce the circulating supply of LUNC tokens while increasing their value.

The LUNC burn mechanism automatically burns tokens whenever a transaction takes place on the Terra Classic network. Tokens burned are relative to the number of tokens in circulation, ensuring that the total supply of LUNC tokens is constantly decreasing, which helps with increasing their value over time.

Binance, one of the largest crypto exchanges, is also implementing the LUNC burn mechanism on trades facilitated by it. The exchange has committed to carrying out LUNC burns monthly. So far, the exchange has burned close to 14 billion LUNC tokens.

The Terra Classic community has burned more than 26 billion LUNC tokens. In the last two weeks, as of writing, the community has burned close to 20 million LUNC tokens. Unlike Binance, which executes the burns monthly, the Terra Classic community carries out the burns weekly.

The continued burn of LUNC tokens has not only increased the number of investors buying them but interest in them too. This is why their price has been surging. More than 40 billion LUNC tokens have been burned so far.

LUNC tokens also outshine the new version with a strong community. The token might have rebranded, but it still is supported by a strong community. Its large network of stakeholders continues to go to great lengths to keep it afloat and hopefully get it back to its former glory.

## LUNA 2.0's future

Since its launch, few people have been hopeful about the new Terra token. Several financial analysts have been quite vocal about its quick death and deterring investors from considering adding it to their crypto portfolio.

Founder and CEO of Quantum Economics Mati Greenspan, for example, when asked about the coin's future, stated that it was never meant to live long.

According to Greenspan, the coin was created for a few investors who had heavily invested in its collapsed version as a way to recover some of their losses at the expense of new money coming from the hype. He added that he didn’t see any reason for the coin’s price to ever go up.

Khaleelulla Baig, founder and CEO of Koinbasket, backed up Greenspan's statement by saying the coin had no future because its founder Do Kwon had lost credibility. The project had lost credibility because Do Kwon didn’t build firewalls around the algorithms even when they had an opportunity to do so.

The two are not the only ones who predicted a dismal future for LUNA 2.0 back in 2022. The cryptocurrency has been through a lot. It is obvious why many people would be wary of it and even predict its quick demise.

However, considering Luna coin news latest, it isn’t performing as badly as many thought it would be. Compared to other cryptocurrencies that have been around longer, it is doing considerably well. While its future is hard to predict, it is worth keeping an eye on.


green image of altcoins with LUNA token in the centre

LUNA Coin Latest News

The ill-famed Terra crash of May 2022 that tanked the price of LUNA from $86.16 to $0.00005524 overnight cast a dark cloud on the token's previously bright prospects. This article investigates the outcomes of the Terra community's LUNA Classic burn initiative.  

The LUNA Classic burn occasioned by Proposal 5234, which initiated a burning tax of 1.2% and later to 0.2% to increase the token's scarcity, is now the most talked about subject within the crypto community.

The burn, seen as an integral part of the Terra recovery plan, was the community's scheme to reduce the number of LUNA Classic (LUNC) coins in circulation to keep the Terra ecosystem alive. This is possibly one of the reasons the coin's market value has remained at number 47 in the [CoinMarketCap](https://coinmarketcap.com/) at the time of writing.        

## The reason behind the LUNA Classic burn 

The Terra crypto crash saw the supply of LUNA coins in circulation skyrocketing to over 6.5 trillion coins. The community initiated a Terra LUNA burn to try and reduce the supply and potentially increase its value. The token’s recovery plan launched [LUNA 2.0](/news/article/what-is-luna-2.0), meaning that while the LUNA burn would not necessarily save the ill-fated token, it would technically have the same effect in reducing the supply.

Crypto burning refers to removing tokens from circulation by sending them to a crypto address not controlled by anyone. This technical removal from the circulating supply of coins is expected to impact a token’s price action positively. The goal was to launch 1 billion LUNA to drive the token’s price toward $1.        

The new token taking over as LUNA 2.0’s main form, [Luna Classic](/news/article/terra-luna-classic) (LUNC), is driving the burning desire with LUNC holders hoping it will help push up the price. As the list of exchanges accepting LUNC increases, statistics indicate that the Terra Classic community recently burned more than 16 million LUNC tokens within a week, even as it aims to still burn billions more in 2023, having already burned over 37.717 billion LUNC tokens.

## How the LUNA crash affected the crypto market

The woes that led to the collapse of [LUNA cryptocurrency](/news/article/luna-crypto) can be traced back to TerraUSD (UST), the algorithmic stablecoin supported by the Terra ecosystem. Unlike other stablecoins pegged to actual cash reserves, the algorithmic stablecoin UST was run by a computer program supporting the preservation of its price equilibrium. LUNA/UST must be burned or produced to stabilize the price of this coin. However, UST started to depeg after a significant amount of its tokens were dumped. This led to more UST being dumped in panic selling, thereby increasing the supply of LUNA, which led to a knock-on effect that crashed the price. 

After the crash, the inflation of the token circulation supply rose significantly from at least 345 million tokens in circulation to 4.47 billion on May 12, 2022, and 6.5 trillion as of July 2 the same year. The LUNA Foundation Guard (LFG) worked hard to avert a crisis and prevent UST from being depegged by purchasing almost $3 billion worth of Bitcoin (BTC). 

Still, the unfolding crypto crisis poured cold water on the strategy. An effort by LFG to sell their BTC reserves of more than 80,000 BTC in an attempt to save UST is thought to have affected the larger crypto market causing BTC to fall below the $30,000 level.

## Will the burn help LUNA crypto recover? 

Holders of LUNC had hoped that the LUNA Classic burn would mop up excess liquidity and begin the work towards pushing its price towards the $1 mark. However, there’s a need for a significant burn before that goal can be achieved. With numerous LUNA supporters calling for LFG to buy out the burning supply, there are questions on whether TerraForm Labs has the resources to facilitate such massive burns.

LUNA's chance of returning anywhere near its previous highs of close to $100 is still tied to its ability to burn a significant portion of its current circulating supply and come down to close to 350 million tokens. While that remains the goal of the UST and LUNA's rehabilitation plan, how that can be accomplished remains a mystery. The [recent announcement](https://twitter.com/binance/status/1613816393723686912) by Binance Exchange that it would support the Terra Classic LUNC upgrade could create a positive impact and revive the decreasing on-chain burn rate of the LUNC tokens experienced during the last few weeks.

## Conclusion 

The Terra Classic community recently, through governance proposals [11242](https://classic-agora.terra.money/t/proposal-deprecate-seigniorage-reward-policy-and-increase-gas-fees-by-5x/49378/132) and Proposal 11243, effectively increased the burn rate while reducing contributions to the community pool. Still, the massive rally at the beginning of January didn't quite hold. There's still a remote possibility that [LUNA Classic](/news/article/luna-classic-news-future) could rise eventually and reach a desirable market cap and become a worthwhile investment.


LUNA Classic Burn - Will LUNC Rally Last?

Luna Classic (LUNC), formerly Terra Luna (LUNA), was given a new name after a disastrous crash. After the collapse, Luna Classic news said the recovery procedure would be carried out to create a new chain supporting future transactions.

Terra Classic (LUNC) created the stablecoin TerraUSD by destroying LUNA with the help of smart contracts. 

TerraUSD's price was fixed to the US dollar for 18 months before being unpegged to retain its value against it.

This unpegging resulted in the death of TerraUSD and the LUNA coin. To validate transactions, the new LUNA will employ the Proof-of-Stake mechanism, which can also be used for passive revenue. The project has a total supply of 6.88 trillion coins, and the price reached an all-time high of $119.18 in April 2022.

## Luna Classic news and Do Kwon

In recent Luna Classic news, it was reported that South Korea was attempting to revoke Kwon's passport, which might compel him to return home. According to [Bloomberg's](https://www.bloomberg.com/news/articles/2022-10-06/crypto-fugitive-do-kwon-is-set-to-lose-his-south-korean-passport) Luna Classic news, a request has been made to the country's Foreign Ministry to cancel the travel passport. A warrant for his arrest and those of other members has already been issued.

According to Yonhap News, Seoul Southern District Court Chief Warrant Judge Hong Jin-Pyo has cancelled the arrest warrant for Terraform Labs co-founder Shin Hyun-Seong and other Kwon partners. The judge found "minimal chance" that Shin or Terra associates would destroy evidence connected to the crypto firm's claims.

The announcement is a relief to Terra Luna Classic investors, who had been worried about the implications of the arrest warrants on the cryptocurrency corporation and its price.

According to the report, Terra co-founder Do Kwon is unlikely to return to South Korea due to ongoing legal processes.

Even though many [cryptocurrency](/news/article/cryptocurrency-crash) investors blame Kwon for their losses and the current bear market, he has remained socially engaged after Terra's collapse. In September, the Terra co-founder declared that he was "making zero attempts to hide" from the police.

He even participated in a live webcast with the infamous hedge fund manager and pharmaceutical executive Martin Shkreli. They discussed FTX and Shkreli's time in prison.

[Terra Classic (LUNC)](/news/article/terra-luna-classic) had a modest price boost due to this being regarded as a good occurrence for LUNC investors.

## Price analysis

The LUNA Classic (LUNC) price has increased in the previous 24 hours. During that period, the altcoin's price increased by 0.47%. Much of the weekly gains have been erased due to daily chart losses.

With the demise of [FTX](/news/article/ftx-uk-warning), LUNC has been teetering on the brink of a negative trend for some time. The coin lost more than 10% of its market value in November. LUNC is currently displaying consolidation beneath its immediate resistance mark.

There is a new update on the development front - the first look at TerraDart's new Alpha bundle. TerraDart is a Dart SDK used for developing applications that connect with the Terra blockchain, which has released a new package named Alpha. The Alpha package has been made available in Flutter and Dart environments to interface with the LUNC blockchain.

## LUNC's 2025 forecast

According to Telegaon, the lowest and maximum LUNC pricing in 2025 will be $0.0089 and $0.028, respectively.

Other analysts believe that LUNC's average price in the coming year will be $0.015, based on its recent performance.

Coinpedia, on the other hand, is less hopeful about the future of Luna Classic. In 2025, LUNC is expected to trade at a high of $0.002846 and a low of $0.001094. It will cost $0.001776 on average in that year.

## LUNC's 2030 forecast

Telegaon remains confident about the prospects of LUNC in 2030 as well. It forecasted that LUNC would trade as high as $5.23 and as low as $1.93 in 2030, with an average price of $3.11.

LUNC's price, on the other hand, is expected to oscillate between $0.002603 and $0.002834 in 2030, according to Bitcoin Wisdom. According to the forecast, its average price in the given year will be $0.002719.

## Technical analysis

In November, the coin demonstrated a positive divergence, following which the price of LUNC increased somewhat. 

Despite this, the bulls were unable to increase their strength. The Relative Strength Index was nearing 40, indicating that the coin was approaching the oversold zone.

Likewise, the LUNC price was lower than the 20-Simple Moving Average line, indicating a lack of demand. The reading also suggests that sellers were driving the market's price momentum.

The Chaikin Money Flow model represents capital inflows and outflows at a certain time. The indicator was below the half-line, indicating that capital inflows were modest. Regarding purchasing power, capital inflows have also decreased due to a lack of investor interest.

The Directional Movement Index displays the asset's overall price direction and trend. DMI was negative because the -DI (orange) line was higher than the +DI (blue). The Average Directional Index (red) was below 25, suggesting that the present price movement is losing strength.

LUNC is now selling at a price 100% lower than its all-time high, set around nine months ago.

## Conclusion

When making a LUNC coin price forecast, consider that cryptocurrency markets are still very volatile. This makes it impossible to precisely anticipate a coin's price in a few hours and even more challenging to make long-term predictions. As a result, analysts and algorithm-based forecasters can and do make incorrect forecasts.

If you are considering investing in crypto, we urge you to do your own research first. Before making any investment choice, consider the most recent market trends, news, technical and fundamental analysis, and expert opinion. 

Remember that previous success is not an assurance of future results. Only trade with funds you can afford to lose.


green image of luna classic logo over blockchain background

Luna Classic News: What's the Future?

South Korean prosecutors claim that the founder and CEO of [Terraform Labs](https://www.terra.money/), Do Kwon, is hiding in Serbia. They believe he left Singapore a couple of months earlier and moved to Serbia. 

[Do Kwon](/news/article/do-kwon-terra) is hiding as he was charged with a breach of financial laws. He is involved in the controversial collapse of the Terra ecosystem that startled the market. However, the global manhunt for the crypto fugitive is still going on. 

A report by [Chosun Media](https://www.chosun.com/economy/stock-finance/2022/12/12/VXFAUH7R7BFSVCYDEM7RNPRCXI/) says that the investigation authorities have stated that they received intelligence about his whereabouts in Serbia. They investigated further and “found it to be true".

## Do Kwon hiding: South Korean authorities seek cooperation

The South Korean investigation authority is already seeking to cooperate with the Serbian government. The Chosun Media report also suggests that the Financial and Securities Criminal Unit of Seoul Southern District Prosecutor will request assistance from Serbian officials. 

The authorities have yet to discover why Do Kwon left for Serbia. They believe it is only to avoid investigation and prosecution.

The notorious figure in the crypto industry earlier moved to Singapore just before [Terra-Luna collapsed](/news/article/terra-luna-collapse). In September, Seoul’s prosecutors issued red warrants for his arrest. The charges included breaching capital market regulations and also giving false information to investors. 

Since then, his whereabouts have not been known. The Korean authorities are yet to track down the fugitive's exact location. In October, they found out that he had left Singapore. He is believed to fly to Dubai and then to an unknown country. Singaporean officials also confirmed this news. 

![do kwon.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/do_kwon_810aeec14a.png)
  
In October, South Korea's Ministry of Foreign Affairs issued a warrant to surrender his passport. However, they have yet to get a response. Meanwhile, on Twitter, he maintained that he was not trying to hide.


red image of serbia with do kwon on foreground

Do Kwon hiding in Serbia, claim Prosecutors

Luna 2.0 is a new version of the Luna token, the new cryptocurrency of the Terra blockchain. It came into existence in May 2022 after Luna and TerraUSD (an algorithmic Stablecoin) crashed.

## Origin

When Terra’s tokens [crashed](/news/article/terra-luna-collapse), there were suggestions from investors in either of them about how to move on.

Many suggested a mass burning, but Do Kwon, the CEO and founder of the network, was against it, stating it would not benefit investors. He instead suggested a hard fork of the Terra blockchain, which received mixed responses from the community.

Despite much criticism, Kwon went ahead with the hard fork move. The hard fork resulted in two blockchains and cryptocurrencies.

The new blockchain and cryptocurrency became known as Terra 2.0 and Luna 2.0, respectively, while the old blockchain and cryptocurrency, which still exist, were renamed Terra Classic and Luna Classic (LUNC).

## Purpose

The new Terra token came into existence to compensate investors who had suffered heavy financial losses after TerraUSD crashed. The token was also a way for the platform to try and recover from the devastating market crash.

The new tokens were issued to those who held their old versions through airdrops. The token’s distribution plan included giving 35% of them to those who held its old version before the crash. TerraUSD holders received 10%.

Investors received the tokens based on how much of either the TerraUSD or old tokens they held before the crash.

## How is it different

Luna 2.0 was created without the vulnerability of its old version. It is designed to operate without depending on any stablecoin for value. The old version-maintained value through its relationship with the TerraUSD algorithmic stablecoin.

## Market performance

On 28 May, when the token first hit the market, it was worth $4.94, according to [Coinmarketcap](https://coinmarketcap.com/currencies/terra-luna-v2/). It would quickly appreciate, ending the month worth $10. Things would, however, take a huge turn for the coins going forward. They would slowly depreciate and start trading at $2 on 10 June.

The coin traded between $2 and $1 for most of the months to the time of writing. It is currently worth $2.68. It is ranked the 99th largest cryptocurrency globally, with a live market cap of $336,746,754.

There are currently 127,475,474 of them in public circulation. They are listed in several crypto exchanges, including Binance, KuCoin, OKX, and Bittrue.

In comparison, LUNC tokens, [as of writing](https://coinmarketcap.com/currencies/terra-luna/), are worth $0.0002662 each. They are ranked the 33rd largest cryptocurrencies in the world, with a live market cap of $1,637,683,104. 

It is worth noting that not many people are confident about the new Terra coins. Many were quick to sell theirs as soon as they were airdropped. While it is early for speculation, the coin is not performing well. There are, however, a few who are hopeful about its future.


What is Luna 2.0?

On 2 September, through its [Twitter page](https://twitter.com/terra_money/status/1565718424222932993), Terra announced that its community had voted to pass a second LUNA airdrop proposal. The proposal would see more than 19.5M new LUNA sent to wallets that did not receive the correct number of the tokens during the project’s first airdrop on 28 May.

According to the announcement, the claim interface went live on 4 September and users had until 4 October to claim the new tokens. Unclaimed ones would be sent back to the community pool.

The first LUNA airdrop took place to compensate [LUNA](/news/article/terra-luna-collapse) and TerraUSD Stablecoin holders after they became worthless in May.

TerraUSD, once considered the largest Algo stablecoin lost its 1 to 1 peg to the US dollar on 9 May. The company sold its Bitcoin reserves to try and save the algorithmic stablecoin, but ended up affecting the native token, dropping its price by 99%.

UST redemption efforts affected the entire crypto market. Bitcoin dropped to $27,000 and wiped out nearly $400billion of the total cryptocurrency market value in May alone.

The new tokens are to be distributed according to a two-year vesting schedule. 

Wallets holding less than 10,000 LUNC or AUST before the UST de-pegging from the US dollar will be subject to a two-year vesting schedule. The vesting schedule is intended to avoid liquidity instability, according to Terra.

## Issues

Both the first and second LUNA airdrop moves had distribution problems. Several users went on Twitter in May complaining about getting fewer tokens. Ashwsbreal, for example, on 29 May, 2022, [tweeted](https://twitter.com/Ashcryptoreal/status/1531002032840093696), “Lost $300k in LUNA. Got an airdrop of $59. Thank you Do Kwon and team".

The concerns were noticed by Terra, as the platform on 30 May [tweeted](https://twitter.com/terra_money/status/1531410663674888192) that some users had received fewer tokens than they expected and that they were working on a solution.

Several UST holders complained about their token distribution on social media after the second batch of the new tokens dropped.

A Twitter user named Joshcantcode1 [posted](https://twitter.com/joshcanspam/status/1566464297567502336), "Still hilarious that I had $3,500 UST and will never see it again! Thank you, Terra, for looking out for the community".

## Network hard fork

After UST crashed, Do Kwon proposed the creation of a new chain. Kwon is the founder and CEO of the platform. 66% of the project’s community agreed with the proposal, which led to the launch of LUNA 2.0, which has no connection to the UST stablecoin.

The new tokens had a great start. They entered the market on 28 May worth $4.94, and by 31 May, they were worth $10.72. They would, however, take a negative turn and drop to trading between $2 and $1 most of the months. As of writing, each of the coins is worth $2.74, according to [Coinmarketcap](https://coinmarketcap.com/currencies/terra-luna-v2/).

The coins are currently ranked the 99th largest cryptocurrency with a live market cap of $347,374,415. 127,475,474 of them are in public circulation.


Terra Executes Second LUNA Airdrop

Wrapping your head around Wrapped Luna, or WLUNA, cryptocurrency could prove a profitable investment, so let's dive straight into it.
WLUNA is a wrapped version of Luna cryptocurrency that belongs to the Terra ecosystem. But to fully understand what it is, we should first understand what a wrapped token means.

A wrapped token is a copy of a cryptocurrency on a blockchain separate from its native network and backed on a 1:1 basis. This is why a wrapped token's value is the same as its underlying native currencies. As such, wrapped coin holders can redeem them for the cryptocurrency they represent.

Speaking of the role wrapped tokens play in the crypto ecosystem, they increase interoperability between blockchains and are used to provide liquidity to a growing DeFi ecosystem.

Along similar lines, WLUNA is pegged to the value of Luna and has the same value as Luna.

## Rebranded as WLUNC

As seen on [CoinMarketCap](https://coinmarketcap.com/currencies/wrapped-luna-token/), by April 2022, there were an increasing number of different addresses holding Wrapped LUNA as the token became widely available. At the time, WLUNA was trading at $116, the same as the Luna.

However, this was before the [collapse of the Terra stablecoin](/news/article/terra-luna-collapse) and the subsequent crash of Luna in May 2022. After the collapse of the ecosystem, the Terra community voted to split the blockchain into two separate chains.

As such, the original chain was then rebranded as the Terra Classic network, which also led to the creation of a new LUNA Coin called LUNA Classic (LUNC). Its wrapped version was named Wrapped LUNA Classic (WLUNC).

Since WLUNC is tied to the value of Luna, it also suffered the same fate as the original cryptocurrency and lost 99.9% of its value. As of writing, WLUNC is trading at [$0.00023](https://coinmarketcap.com/currencies/wrapped-luna-token/).

## How does it work?

Unlike Luna, WLUNA is minted on Ethereum and is an ERC-20 token. WLUNA basically represents Luna on the Ethereum blockchain. 
As for how it works, you freeze your original tokens and mint Wrapped LUNA tokens on Ethereum. This way, you can make your idle Luna tokens work by locking them up in DeFi protocols.

Being based on the Ethereum blockchain allows it to be used on [Ethereum](/news/article/ether-price-prediction), which wasn't possible for Luna. This way, the holders of [WLUNA](https://www.livecoinwatch.com/price/WrappedLUNAToken-WLUNA) tokens not only get to utilize the Terra ecosystem but also participate in the vast and thriving DeFi ecosystem of Ethereum.

WLUNA is designed to provide Luna holders with greater liquidity and flexibility in using their Luna tokens.

So, if you have an Ethereum wallet, you can store, lend or borrow your WLUNA token on the decentralized applications (Dapps) built on the second-largest cryptocurrency network.

To buy WLUNC, you can head over to Coinbase and Uniswap.



Understanding Wrapped Luna

In May 2022, the need for Terra solutions landed. The Terra ecosystem experienced a catastrophic crash, with more than $50 billion wiped out from the market as [LUNA plunged](/news/article/terra-luna-collapse) by 100%. 

[Terraform Labs](https://www.terra.money/) is a platform that introduced one of the most popular algorithmic stablecoins, [TerraClassic USD (UST)](https://coinmarketcap.com/currencies/terrausd/). It also introduced a high-performing coin, LUNA, now known as LUNAClassic. But this year, its price declined from over $100 to $0. 

Since then, the platform has been making efforts to revive the project. Among them, one of the significant steps has been the launch of Terra 2.0. Meanwhile, the CEO of Terraform Labs, Do Kwon, has offered several Terra solutions for its restoration.

Here, we look at how the platform plans to move ahead and whether it will be restored in the near future!

## How did the crash happen?

The platform operates on a swapping mechanism of two crypto tokens; UST and LUNA. The former is an algorithmic stablecoin backed by USD. The latter powers the blockchain and helps maintain UST's value at $1.

This system allows holders to swap these tokens to get a guaranteed $1.

Unfortunately, this mechanism was not sustainable as there were no assets to back UST. That’s why when it lost its peg to the USD, it crippled the entire ecosystem. The algorithm failed when people started to burn LUNA to get UST’s $1. 

## Terra solutions proposed by Do Kwon

Right after the debacle, the founder and CEO of Terraform Labs took to Twitter to propose solutions for the recovery of the ecosystem. Kwon tried to reassure the LUNAtics community in a [thread](https://twitter.com/stablekwon/status/1524331171189956609) and gave possible Terra solutions. He acknowledged the selling pressure on LUNA and proposed a four-times increase in minting. The idea was to help strengthen TerraUSD so investors could cash it out anytime. Kwon also formally presented it at the governance forum. 

Terraform Lab’s CEO put forth another proposal, [1623](https://station.terra.money/). This endorsed the origin of a new chain, which was eventually accepted. Following the acceptance of this solution, a 2.0 version surfaced, and previous versions were renamed to classic ones. The ecosystem also airdropped the new tokens for the existing holders. This was a recovery plan to reset the network.

## Are Do Kwon's Terra solutions sustainable?

After the emergence of a new chain, [LUNA](/news/article/luna-price-prediction) has seen a quiet recovery period. Besides, it recently experienced a positive run where its price reached $6.72. However, currently, it's worth is again down to $2.72. It would be too early to comment on how this new blockchain is performing. But, indeed, there are some key issues.

First, this version has not influenced the current state of the classic UST. One reason behind that is the lack of investor confidence in the token. Investors are still not ready to exchange their dollars for this stablecoin. 

Second, its airdrops pledge 40% for the old token holders. This move will also be ineffective as it would distribute the amount unequally. Ideally, the holders who have more stakes should be compensated more. 

Moreover, another loophole about the airdrops is the involvement of the Anchor protocol. Not all investors had their tokens on this platform at the time of the collapse. So, how will it compensate wallets on other exchanges? 

Nonetheless, these Terra solutions are quite reasonable considering the extent of the collapse. However, for a sustainable solution, transparency is most important. Moreover, the lack of clarity about the $3.5 billion Bitcoin reserve, and the issue of Kwon hiding from the authorities, have increased the community’s suspicion. 

## Final thoughts 

Terraform Labs have gone through a disastrous collapse. So far, it is the worst in the crypto market’s short history. The loopholes in its algorithmic stablecoin resulted in draining billions from the market. Several Terra solutions were advanced for recovery. One major step towards it has been the fork of the blockchain.

It has helped in the recovery phase of the ecosystem. But there are still several issues with this approach. For sustenance, changes in algorithm and transparency are inevitable. 
 


Terra Solutions: How is it Moving Forward?

Luna Classic (LUNC) is the native token of the original [Terra LUNA](https://www.terra.money/) 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](/news/article/terra-usd) 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](/news/article/guide-to-binance-uk), [KuCoin](/news/article/kucoin-crypto-metaverse), 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](https://digitalcoinprice.com/forecast/terra-luna/2025), 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](/news/article/terra-luna-collapse) 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](https://www.interpol.int/en) has [reportedly](/news/article/do-kwon-terra) 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.



What is Terra Luna Classic?

Olajide Olayinka Williams "JJ Olatunji", better known as KSI, is a British rapper and YouTuber. He began gaining followers in 2009 when he launched his youtube channel and began posting video commentary on the FIFA video game series. 

After 12 years, the 28-year-old artist now has over 37 million subscribers. He's been named to the Sunday Times' Top 100 UK Influencers' and Tubular Labs' 'UK's Most Influential YouTube Creators' lists, and his channels have received over 8.5 billion views.

## KSI NFT investments

KSI has joined the Bored Ape Yacht Club after purchasing a [Bored Ape](/news/article/bored-ape-nft) and kennel club dog.

In his [Twitter post](https://twitter.com/ksi/status/1429770910794403840?lang=en), he tweeted: " I've given in and bought an NFT. A Bored Ape Yacht Club"

![ksi 1.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/ksi_1_c44c15d60e.png)

KSI holds the Bored Ape #2105. The NFT is a five-trait, bored-looking, unshaven mouth, golden brown fur ape dressed in a prison jumpsuit. KSI purchased the NFT for 25.4169 ETH, or about USD 83,875.

The following day, he tweeted: "I've paid over $23000 for a glowing dog."

He also bought glowing dog #2144 from the Bored Ape Kennel Club. BAKC golden dog is a radioactive fur puppy wearing a purple headband and a BAYC life preserver.

![ksi 2.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/ksi_2_c16f5a1460.png)

## KSI crypto investments

The British rapper had a hard time with crypto. He lost around $2.8 million in the [Terra Luna crash](/news/article/terra-usd). The rapper claimed he purchased 100,000 Terra coins when the price dropped and had decided to hold them for a long time. But, with the [Luna crash](/news/article/terra-luna-collapse), he lost almost his entire value of his Luna investment. 

Before this, the rapper also claimed that he lost around 2 million pounds in crypto investments around Nov-Dec 2020, hoping to get good returns.

Crypto is a volatile space. It's always advised to conduct in-depth research before investing in the cryptocurrency market. 




KSI NFT and crypto investments

Kujira is a layer one platform built on Cosmos that uses the $KUJI native token. Since witnessing the devastation caused by [Terra Classic's collapse](/news/article/terra-luna-collapse) at ground zero, the Kujira team has redoubled their efforts, resulting in the launch of a sovereign Cosmos layer one blockchain six weeks later. 

Apps built on Kujira provide an efficient, secure, and risk-free environment to create cost-effective and accessible tools for beginners and advanced crypto traders.

## ORCA link to Kuji coin

Leverage and loans, particularly in crypto, have grown in popularity. ORCA operates in this market. They take loans that exceed a certain percentage, automatically liquidate these positions, and sell them. Those who take part receive a liquidation fee. If you're wondering how Kuji coin played a role in the LUNA, UST, and Anchor mechanics, here's a quick example:

LUNA tanks. Assuming Kai has some LUNA, he mints $100 of bLUNA on Anchor before depositing it. He is eligible to borrow $60, which he can spend however he sees fit. Viraj, a close friend, has $100 in UST, of which he bids 30% on ORCA. Viraj's bid is a result of ORCA. Kai's LUNA is now worth 95 dollars, putting his loan at risk. Kia's bLUNA has now liquidated, and Viraj has received the bLUNA at the premium offered. 

In this case, the Anchor Protocol, as the lender, will recoup the $60 UST loaned to Kai by selling the bLUNA Kai bonded. Viraj now has $95 worth of bLUNA (liquidated from Kai for which he only paid $66.5 (because Viraj bids at a 30% discount on Orca, $95 x 30% = $66.5). In contrast, Kai still has the remaining $33.5 in the ORCA contract in case any other risk liquidation arises. 

As Kuji coin continues to establish itself as a new layer one platform, it must restart the application within ORCA.

## FIN link to Kuji coin

FIN has no inflationary token incentives, which increases capital efficiency, allowing farmers to reinvest their profits elsewhere. Consider Kucoin, but wholly decentralised and on-chain. 

There are no additional fees to incentivise trades because there is no reliance on money to execute them. In short, it's much cheaper, there's a risk of missing a transaction, and there's no room for biased trades bots chosen to execute.

 ## So, what does this mean for protocols? A great deal. 

1) Users no longer require a liquidity pool, which leads to three major points.

2) To keep people in an LP, you don't need to give away millions of printed / inflationary tokens. 

3) Users community will not suffer any temporary loss to support your project. 

4) Users can redirect your protocol-owned liquidity to more productive use. 

5) Last but not least, it disregards the "first in, first out" model. 

## Blue and how it swaps Kuji coin 

[BLUE](https://blue.kujira.app/) powers the Kurjira ecosystem and is a dashboard that allows users to bond and swap $KUJI, vote on governance, connect to the Kujira Network, and claim rewards all in one location.
 
To have a more sustainable and efficient DeFi model and lay the groundwork for decentralised money, Kujira released the stablecoin $USK, an over-collateralised Cosmos stablecoin soft-pegged to the USD and initially backed by $ATOM. They are using maker DAO's trusted, theoretically sound system. Furthermore, as a native Cosmos stable, $USK provides $ATOM with another use case for driving value accrual.

Users can exchange a hard pegged stablecoin for a specified amount of the asset to its fixed value. As can be seen, this is a tried and tested model. It keeps a constant, fixed ratio—a soft pegged stables in value within a range determined by well-designed incentives. When Ethereum dropped from $1400 to $90, for example, $DAI fluctuated between $0.96 and $1.04 per coin, though it was around $1. 

To conclude, Kujira does better at building long-term value and rewarding $KUJI token ownership. They operate with no slippage or impermanent loss and focus on generating actual revenue.

Kujira is currently a decentralised order book [FIN](https://twitter.com/hashtag/FIN?src=hashtag_click) and a liquidation market [ORCA](https://twitter.com/hashtag/ORCA?src=hashtag_click) that provides users with actual, sustainable yield by re-allocating network fees to their users.



Kuji coin - and its three applications

The UK parliament member, Matt Hancock urged the issue of Bitcoin’s necessity of having an open [regulatory framework](/news/article/crypto-tax-uk) that resulted in a crypto analyst positive stance on the sector.

Hancock recently revealed that even though the crypto market did go through a huge sell-off, that hasn’t shaken his faith in the sector. 

Regarding the recent crash of the cryptocurrency terra (LUNA) (UST), he said that this was just something that happens even in the mature markets.

“The crash of Luna and the pressure on other stablecoins serves as a reminder that cryptocurrencies are still currencies and the age-old rules of finance still apply,” he opined and compared the situation with the dot-com bubble crash in 2001.

“The underlying technology is so powerful … Just because the dot-com bubble crashed in 2001, we didn’t discredit the internet as a technology,” he concluded.

“No country can stop this revolution. We can only choose whether it happens on our shores or happens to us from elsewhere,” he commented and added that the UK can succeed only if and when it decides to embrace the new technology.

This also means, said Hancock, that the government has to be able to adjust to crypto because, in liberal governments, no one should tell “people what they can and can’t do with their money”.

“The job of the regulators is to make sure there is high-quality information and that the market functions effectively. What remit does the state have to tell them what they can and can’t invest in? I think that’s incredibly patronizing, ”Hancock asserted.

Aligned with Hancock’s sentiment, the crypto analyst Madeleine Hume also believes that [crypto integration](https://www.morningstar.co.uk/uk/news/220381/5-charts-on-crypto%2339%3bs-past-present-and-future.aspx) is crucial. “Rather than a swift takeover, we expect that integration with existing systems across financial services and other sectors will likely determine future adoption rates in the space,” she commented.

Hancock is no stranger to being a [crypto advocate](https://www.monitalks.io/news/article/crypto-tax-UK). He is famous for his claims that crypto regulation can be fantastic for the growth of the overall economy but also for making financial systems more transparent and reducing crime. 

“We must understand and harness the potential of new technologies, not fear and avoid their disruptive power,” he said.

Still, he admitted he hasn’t invested in cryptocurrencies himself explaining that he wanted to “speak freely” about it without fear of having a conflict of interest.


Crypto analyst view correlates with UK parliamentary sentiment

What amount of energy does the Luna crypto consume during transactions? There are concerns about [Luna](https://coinmarketcap.com/currencies/terra-luna/) crypto's sustainability; how safe is the coin? A sustainable coin is friendly to its environment. Read on to know more about the Luna crypto. 

Terra Luna is one of the largest cryptocurrencies in the crypto market, meaning that many transactions are made on it. So the big question is, how environmentally friendly is the Luna crypto? Concerns about the sustainability of this cryptocurrency are gradually coming up. A coin this large should be a sustainable coin or at least work towards achieving it. 

To understand this article fully, you need to know what sustainability in cryptocurrency means. So here’s a brief definition of what a sustainable cryptocurrency means. 

## Understanding what sustainable coin means

Sustainability in cryptocurrency refers to a sustainable coin with less carbon footprint and low energy-consuming transactions. 
The carbon footprint has a terrible impact on the environment. Some of these effects are its negative contributions to urban air pollution, climate change caused by humans, acid rain, and more. This is really bad, right?

I have a friend who believes that everything in life has two sides: the good and the bad. It looks like his theory applies to cryptocurrencies. Cryptocurrency has made many people millionaires, but it has also harmed the environment greatly. But in the case of sustainability, not all coins are bad; some of the coins are sustainable, meaning they are less harmful to their environment. So is Luna crypto one of the good coins?

## What is Luna?

Luna is a native token of the Terra network. It was created with a stable coin known as UST, the most popular stable coin currently. 
Terra Money white paper (Terra Money): Stability and Adoption was published in April 2019, and it posits that:
While many see the benefits of a price-stable cryptocurrency that combines the best of both fiat and Bitcoin, few have a clear plan to adopt such a currency.

“Since the value of a currency as a medium of exchange is mainly driven by its network effects, a successful new digital currency needs to maximise adoption in order to become useful. We propose a cryptocurrency, Terra, which is both price-stable and growth-driven.”
According to Terra’s white paper, the reason for creating Luna was to carry out what Bitcoin was initially going for, a peer-to-peer electronic cash system. 

## Understanding Luna

Terra Luna has really gone a long way, considering where it started from, hence my reason for initially calling it one of the largest cryptocurrencies in the crypto market. The Luna crypto was initially known for ensuring that stablecoins remain stable. However, it is now part of the most potential coins in the crypto space while still helping to maintain the stablecoins.

2021 was a stepping stone for Terra Luna. It started the year with less than a dollar price and ended it with about $89. On March 9, 2022, Luna reached an all-time high of $104.58. 

The more popular a coin gets, the more people want to know about them. The awareness for crypto sustainability became stronger when Elon Musk announced, in 2021, that due to Bitcoin’s detrimental environmental impact, making payments to Tesla with Bitcoin would be stopped. This led people to start questioning the sustainability of other notable coins, like the Luna crypto. 

Sustainability is a delicate matter and one that comes to light at every slight opportunity, considering how important it is to the world at large.
Is the Luna crypto Eco-friendly?

On the Terra network, validators verify transactions based on the number of coins they hold, meaning that the network uses a proof of stake model. The use of this model consumes less energy than other models, and this makes the Luna crypto eco-friendly.
The Proof of Work (PoW) model is more energy-consuming than the Proof of Stake (POS) model. The PoW model can only be run on high-tech computers that can solve complex algorithms to convert the bundle into a block and add it to the blockchain. This requires a lot of energy. 

Notable organisations are now rejecting non-eco-friendly cryptocurrencies, and Luna remains relevant due to its safe nature. 
The most non-eco-friendly cryptocurrencies are those that require mining. Mining requires a lot of energy which leads to a high level of carbon footprint. Examples of mined cryptocurrencies are Bitcoin and [Litecoin](/coins/ltc). Terra Luna is not a mine, meaning there is no use for the PoW model as it consumes so much energy. 

## Does Terra Luna make any impact in society?

Cryptocurrency is a free space without regulation. No higher powers are guiding the different crypto companies, and neither is the government involved. Some cryptocurrency companies take advantage of the lack of regulation and act as they please, mostly unethical, while some believe in morals and high positive standards. The Luna crypto team is part of those with good moral standards. 

Terra Luna gives back to back to society. Firstly the fact that they use PoS rather than PoW. PoS does not just use less energy during the transaction. This helps conserve energy and save a lot of money and time for the investors. Operating a high-level tech computer requires a significant amount, but the case is entirely different with Terra Luna.

## What Makes Terra stand out?

Terra is an independent PoS model blockchain, unlike some blockchain networks. Terra Luna is a Layer-1 blockchain, and it comes with lots of benefits.

Terra Luna offers a strong foundation for the growth of stable coins. It also serves as a secure and safe mode of structured payment or for creating a blockchain contract.

A Recap of What Makes Luna Crypto Sustainable
The Luna crypto is a sustainable coin, and it is surely friendly. Why do I say this?
1.	Energy Consumption: Terra Luna uses the power of the stacking POS model, meaning it consumes less energy. Carbon Footprint: Terra Luna crypto uses a few hundred machines to power the Terra network. Although it still produces a carbon footprint but not so much and not as much as most cryptocurrencies.
2.	Eco initiatives: Terra Luna has a foundation created to help impact positively in their environment. 
Generally, cryptocurrencies have impacted the world at large, some in a positive way and some others in a negative way. Acting right is an organisation without regulation that requires a high level of restraint and discipline, and the Luna crypto has both. 

## Is Luna Crypto More Sustainable than Bitcoin?

This question regarding the sustainability of the Luna crypto is asked a lot. Well, the fact is that the two cryptocurrencies cannot be compared to each other in this way, as Terra Luna is by far more of a sustainable coin than Bitcoin. 
Bitcoin has a large number of infrastructures and uses thousands of machines to run its network, meaning that the carbon footprint would be on the high side. 

Second, Bitcoin is created through mining, and the mining process for the coin requires supercomputers. Using supercomputers requires much power. High-level consumption of energy is bad for the environment. 
When it comes to eco-initiatives, the fact that Bitcoin gives back a lot to society cannot be disputed. However, so does Terra Luna.
Terra Luna conserves energy because it uses fewer machines to run its blockchain network, and the Luna crypto is not mined. It uses the power of stacking model PoS, which uses way lesser energy when compared to Bitcoin. 

Terra Luna crypto is more sustainable than Bitcoin, but that is not the case here. All cryptocurrencies should achieve sustainability to make our world livable for all of us. 

## What does the future hold for Terra Luna crypto?

Certainly, this will be the question on the minds of many, including me. A company as innovative as Terra probably already has laid down a plan for its future. 

The world is watching and taking the need for cryptocurrency sustainability pretty seriously. Notable organisations like Mozilla and Wikipedia have already stopped accepting payments with cryptocurrencies that are not sustainable, putting all cryptocurrency companies on their toes.
Hopefully, the Luna crypto will continue to be a sustainable coin and even improve more as an eco-friendly cryptocurrency. 
Green digital payments are very much possible for businesses; with time, they will be widely adopted with all cryptocurrencies, and our environments will become healthier for us.


Is Luna Crypto a Sustainable Coin?

Wondering where the Luna coin will stand in the future amid its recent debacle? Read below to find out what experts say about Luna’s price prediction in 2023, 2025 & 2030.
The crypto market has been experiencing a decline since the start of this year. But, after reaching its highest, the sudden collapse of Luna in May 2022 has further worsened the situation. Today, investors lack confidence in the crypto market. Whereas all the top coins like BTC, ETH, and BNB are also losing their value.

The downfall of Luna has left a severe impact on the entire crypto market. And we might continue to experience its aftershocks for a long time. So, if you’re a Luna investor or not, you must follow the Terra Luna price predictions after the crash closely!

## How did Luna crash?

To understand the Terra Luna debacle, you must know how Terra operates. Terra blockchain works on the swapping mechanism of two coins; UST and Luna. UST is a stable coin pegged with fiat currencies like the US Dollar. This blockchain maintains the stability of UST at $1 by paying you through Luna. Also, its Anchor protocol allows you to get a 20% yield if you buy and deposit UST to it.

But, as a crypto whale bought $285 million of UST with [Bitcoins](/coins/btc), its price drastically decreased to under $1. This led to UST losing its peg to the US dollar, and its native coin, Luna's price, also dwindled. Because of that, holders started to liquidate their profits, causing the entire Terra Luna ecosystem to crash.

As of 23 May 2022, Luna is worth only $0.00019, which was around $116 in the previous month. Comparably, the current price of UST is $0.07112, which was maintaining its price at $1.

## Can the Terra Luna Ecosystem Recover? - Terra Luna Price Predictions

Can we expect the revival of the Terra Luna ecosystem or not? It is almost impractical to guess it because of the high volatility in the blockchain. But, observing the long-term Terra Luna price predictions might help us evaluate the situation. Let’s take a look!

### Terra Luna Price Predictions 2023

According to the DigitalCoinPrice current estimates, Luna will be averaging $0.000273 next year. Its lowest price will be $0.000253, and it can go to a highest of $0.000302.

### Terra Luna Price Predictions 2025

Luna Price predictions for 2025 suggest that it will be averaging $0.000372 and can reach the maximum price value of $0.000400. Yet, the minimum price of Luna will be around $0.000331.

### Terra Luna Price Predictions 2030

The forecast does not suggest Luna go bullish till the year 2030. It will still be maintaining the average price of only $0.000884 in 2030. It might reach the highest of $0.000903, whereas its lowest price will be $0.000848.

## Is Luna Coin a Good Investment?

Luna's price today and the Luna price predictions till 2030 do not suggest that it will regain its position. According to the forecast, Luna is unlikely to reach the $1 mark.

But, as the Terra Labs are taking some majors to revive the ecosystem, investment in Luna is a gamble. So, if you are already holding the Luna coins, it is better to keep them and patiently hope for the revival of Luna.

Please note that our Luna price prediction is based on the general observation of the crypto market and should not be taken as financial advice. If you are interested in investing in Luna coin, carry out your own research before coming to any conclusion.


Luna Price Prediction: Is it Buying Time?

The [Terra Luna](https://coinmarketcap.com/currencies/terra-luna/) collapse wiped billions from the crypto market. Will it recuperate?

Visualise the moment when your entire investment is wiped out suddenly. That's the harsh reality for millions of investors in the Terra Luna cryptocurrency. Its value dropped dramatically from more than $100 per coin to less than $1, losing 99% of its value within a few minutes and sending huge repercussions around the whole crypto world.

So, what's the reason behind Terra's Luna cryptocurrency price collapse, and what impact will it have on the crypto market?

## What is Terra Luna?

Terra Labs, a South Korean blockchain development company, designed the project Terra network, which comprises two cryptocurrencies: TerraUSD (UST) and Luna (LUNA).

The Terra network authorises blockchain developers to make custom blockchains and DApps for a broad range of use cases, but typically operates on Delegated Proof of Stake (DPoS) algorithm. The network focuses on DeFi, NFT projects, and Web 3.0 apps. It's linked to other significant blockchains, including Ethereum, Binance Smart Chain, and Harmony, and is deemed a powerful player in the DeFi world.

Terra network possesses two native tokens, UST and LUNA, and both have different functions. UST is a stablecoin, implying its value is pegged to $1 and is utilised to risk or shift tokens when markets become jerky. In contrast, LUNA is a more tradable investment whose price fluctuates depending on market circumstances.

Both coins are intrinsically linked, with UST pegged to LUNA using something named "algorithmic pegging". Typically, a stablecoin is funded 1:1 with a tangible asset, like gold or dollars, ensuring investors that the value will stay at $1 (or reasonably close).

Algorithmic pegging operates a smart contract to alter the value of the linked assets automatically. In this case, the smart contract automatically uses LUNA tokens to mint new UST tokens, maintaining the UST price stable and LUNA deflationary (theoretically). So, no matter the market conditions, 1 UST can consistently be redeemed for or coined for exactly 1 LUNA.

## Reason Behind Terra Luna Collapse

The sudden Terra Luna collapse took place in early May 2022, when the value of UST unexpectedly began falling from its $1 peg.

The unexpected price fall caused a massive number of LUNA to be minted to stable the UST value, saturating the market with LUNA tokens. This pushed the price down and smashed LUNA's price overnight. Indeed, LUNA moved from a top 10 crypto to descending outside the top 150 overnight. Its circulating market supply tripled from about 350 million to more than 1.4 billion in just two days.

Terra Labs had assembled around $3 billion in [Bitcoin](/coins/btc) to begin building a reserve. It wasn't nearly sufficient to stop the market drop. The company was compelled to vend its resources (against a Bitcoin market that has also lost significant value over the same course). Ultimately, there was no more $1 value of LUNA for every UST, implying both cryptos would drop altogether without any clear path to recovery.

UST is an algorithmic stablecoin. Eventually, its stability is naturally related to market volatility. When support for either related cryptocurrency becomes a problem, there is always a possibility that one or both will collapse and witness a market fall.

Now, with the value of UST still not redeemed to its $1, Terra is trying to raise the supply of LUNA to boost the burn rate and saturate the market with coins, putting more downward pressure on the crypto.

## Will Terra Luna recover?

Amid the market crash, Terra Labs CEO Do Kwon presented a Terra Luna recovery strategy to stabilise the present crypto destruction. According to his plan, he will work to stabilise the Layer-1 ecosystem.

The strategy is:

•	A new LUNA with a supply of 1 billion will be spread across the community
•	40% of this LUNA will be given to existing holders before the depeg
•	A further 40% will be given to present UST holders
•	10% will go to current LUNA holders
•	the last 10% will go to a community pool for development

This recovery strategy prioritises the Terra Layer-1 as Kwon and the community strive to protect the broader ecosystem.
Kwon said Terra Luna needs a growing community to make its blockspace valuable again.

"The only way to do this is to make sure that token holders before the attack commenced, the most loyal community members and builders, stick around to keep providing value," he added.

Right now, it is just a proposal to recover the Terra loss. The crypto market is highly volatile and we are left to wait and watch until the market stabilises.
 



Terra Luna Collapse: Why Did It Happen

The value of Luna plunged sharply on Wednesday, from $6.75 to a little over $1. As of Thursday afternoon, the currency was worth only $0.02. The sibling token of the controversial stable currency [TerraUSD](https://coinmarketcap.com/currencies/terrausd/) is now effectively worthless.

According to Coin Gecko statistics, Luna fell to $0 on Friday, a remarkable decline for a cryptocurrency formerly valued at more than $100. 

TerraUSD, sometimes known as UST, is designed to be tied to the US dollar one-to-one. When the UST decoupled from the dollar earlier this week, values plummeted. UST has lost its peg and was trading at 12 cents on Friday, according to statistics.

Traders prefer to acquire currencies such as [Bitcoin](/coins/btc), [Ether](/coins/eth), and [Dogecoin](/coins/doge) using digital assets tied to the dollar since only the price of the crypto asset changes when they buy or sell. 

## Stablecoins Rise in Popularity

Stablecoins enable quick trade without the lengthy settlement timeframes associated with government-issued currencies, which might take days. If a person wants to sell Bitcoin and immediately lock in their dollar winnings, they might do so by purchasing a stablecoin on major cryptocurrency exchanges.

UST and Luna are connected. UST is referred to as an algorithmic stable currency, which means there is an expectation that its $1 peg will be managed by the underlying code. This is fundamentally different from other stable currencies, such as tether and USDC, which are backed by real-world assets like bonds. UST has no real-world reserves. 

Algorithmic stablecoins are not backed by assets, instead relying on financial engineering to maintain their ties to the dollar. Previously, the algorithmic stable currency TerraUSD kept its $1 price by depending on traders to perform an arbitrage function between Terra and Luna values. 

When Terra went below the peg, merchants would "burn" the stablecoin, taking it out of circulation by swapping TerraUSD for $1 worth of fresh Luna units. This move lowered TerraUSD's supply and increased its price. When the value of TerraUSD soared beyond $1, traders might burn Luna and generate new TerraUSD, boosting the supply of the stablecoin and bringing its price back down to $1. Traders said a series of significant withdrawals from Anchor Protocol, a crypto bank established by developers at Mr. Kwon's business Terraform Labs, was the cause for the decline. It began during the 7-8 May weekend and spiralled out of control the following Monday. Digital currency investors use such services to earn interest on their coins by lending them out. 

The Anchor platform held most of the stablecoin's supply. According to the platform's website, investors had invested more than $14 billion in TerraUSD in Anchor by early May. Large trades eroded TerraUSD's $1 value during that May weekend. 

Because of the volatility, many investors withdrew their TerraUSD from Anchor and sold the coin. As a result, additional investors withdrew from Anchor, causing a chain reaction of more withdrawals and selling. TerraUSD deviated from its dollar peg as the supply-demand equilibrium was disrupted. Luna, its sister coin, has also seen its value fall. The crypto community speculates that an anonymous trader triggered the run as part of an "attack" on the stable currency. 

## Anchor TerraUSD Deposits Drop

According to the company's website, Anchor's TerraUSD deposits had dropped to around $1.6 billion on 13 May. The Terra blockchain, which underlies UST and Luna, has also stopped processing transactions twice in less than 24 hours, adding to the problems. Before the catastrophe, $14 billion in TerraUSD was placed in Anchor. There is less than $200 million remaining.
  
The Luna Foundation Guard may be running out of funds as well. Its crypto reserves are down to less than $90 million, and it has no Bitcoin in its wallet. The breakdown also impacted the Terra blockchain, which was momentarily unavailable on Thursday "to avoid governance assaults".

Meanwhile, Binance, the world's largest cryptocurrency exchange, delisted UST and Luna on Friday. Many traders have sold, believing that the assets would not be able to recoup their losses. Even Bitcoin fans have expressed concern. 
 
Nonetheless, the collapse spread. Luna's Bitcoin hoarding spread to other cryptocurrencies. Traders anticipating a TerraUSD breakdown appear to have sold Bitcoin, leading to the token's falls. This, in turn, undermined demand throughout crypto markets, which lost more than $400 billion in market cap as several tokens, including Bitcoin, Ether, Cardano, and Solana, fell by more than 20%.

The incident has also drawn policymakers' attention back to the absence of regulation around stable coins and the larger cryptocurrency sector. As TerraUSD broke from its peg on 10 May, Treasury Secretary Janet Yellen reiterated her appeal for Congress to establish laws governing stable currencies.


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