Luna Classic, which was previously known as Luna, jumps 36% despite the turbulent market conditions. The cryptocurrency saw a volume of around $222 million in the last 24 hours. Its current ranking by market cap is 214, and the total supply of the token is 6,553,750,137,259 (6.5 trillion). The recent jump happened after the price almost bottomed out and has moved sideways for over 2 weeks now.
About Luna Classic
Terra started its development in January 2018, and its mainnet was released in April 2019. Till late April 2022, it used to provide stablecoins tied to the US dollar by managing the $1 price with an algorithm. However, the crash of UST and a massive supply increase of Luna token has damaged its price beyond repair. It is also important to note that Luna was hard forked to create a new token with no links to UST and the old token became Luna Classic.
The project was founded by Do Kwon and Daniel Shin, and their goal was to increase the adoption of crypto through usage and price stability. However, the unsustainable interest rates offered by Anchor Protocol on depositing UST was one of the reasons the project died. Even the whole method of managing the price by burning and mining tokens was flawed and lead to a death spiral which the team couldn’t pull back the project from.
Originally Luna was designed to have a max supply of $1 billion tokens. If the supply increased any further, the new tokens were supposed to be burnt, and the price of Luna and UST was maintained. But after the death spiral happened and investors started to profit by arbitraging, Luna’s total supply skyrocketed to 6.5 trillion in a matter of days. So, the price is at just $0.00007348 right now.
Should you buy Luna Classic?
Luna Classic’s huge supply and zero practical use make it an absolutely bad investment. It is clear that investors will never see price action like before. These small pumps and dumps in its price action are going to come. However, do not fall prey to such things or promises from anyone that claims LUNC will rise to 1 cent.
What are your thoughts as Luna Classic jumps by 36% despite having anything back it and bad market conditions? And do you think the Luna crash was preplanned? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.