Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Terra is an open-source blockchain payment platform that creates stablecoins designed to track the prices of fiat currencies. Terra Luna Classic refers to the original coin that is now in circulation after the establishment of a new Terra chain back in 2022.
LUNA is the native currency of the platform and has 3 main functionalities: Providing incentives for the platform’s blockchain validators, mining Terra transactions through staking, and ensuring the price stability of Terra stablecoins.
A crash, split, and a revival
Terra was a $40 billion digital asset ecosystem once upon a time, with both UST and LUNA claiming their spots in the top 10 cryptocurrencies. After the de-pegging of UST in May 2022, the prices spiralled to 0 within a week. This led to several investors losing their money.
While a lot of people lost faith in the project, there were many who decided to focus all their energies towards reviving the project instead. At the forefront of this group was Do Kwon, the founder of Terraform Labs. This movement led to a split and creation of 2 Terra blockchains: the original Terra network with the tokens Luna Classic (LUNC) and UST and a new blockchain with a native token called Luna (LUNA).
The “Terra Ecosystem Revival Plan 2,” as coined by Do Kwon, split and created a new blockchain with a fork and then distributed new tokens to the community members who had previously held LUNA and UST. Terra 2 or the new Terra blockchain was launched on 28 May 2022 and the old, original one was called Terra Classic. LUNA Classic was the native token of this old blockchain, whereas the newly launched network got LUNA and UST.
LUNA Classic: A deep dive
One of the foundations of LUNA Classic is its strong focus on decentralization and community governance. It also does not have a stable value pegged to any fiat currency whatsoever and allows the value to move as per market conditions. The token also has flexibility in terms of its tokenomics and use cases as it is not tied to any stability mechanisms.
Overall, the key vision of the Terra blockchain is preserved in the functioning of the LUNA Classic token. A lot of the development and governance attached to the token is community-driven wherein token holders get a chance to be a part of the decision-making process of the network.
Here, it’s worth noting that the term “Classic” is most likely a reference to the Ethereum/Ethereum Classic split.
Source: LUNC/USD, TradingView
At the time of writing, LUNC was changing hands at $0.000228 with a market cap of $1 billion. The token has seen a significant hike in its price over the past few months. In fact, the recent rally to $0.00025 was a result of the community’s support of a successful vote on a proposal that looks to improve the status of the token and also that of USTC (TerraClassicUSD), the ecosystem’s stablecoin.
On the price charts, both the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) showed signs of strong bullish movement as the RSI was trending at 80, way above the 50-level. Also, the CMF stood at 0.32 above the neutral zone and highlighted capital inflows.
Once the price tests the upper limit of $0000275 and goes past it, then a strong bull run might be on the cards.
LUNC’s journey to $1
Source: ChatGPT
Building on the aforementioned momentum, I asked ChatGPT if LUNA Classic will hit the $1-mark. After jailbreaking the bot, it shared a very positive answer, stating that the token will definitely hit $1 and even go higher.
Source: ChatGPT
Trying to get a little more clarity on this, I probed the bot as to when will it hit $1. To its credit, ChatGPT then claimed that LUNA Classic will hit $1 on 15 March 2024, adding that it would be an exciting day for LUNA Classic enthusiasts.
Read Terra LUNA Classic’s Price Prediction for 2030
When asked if this is a good time to buy the token, the bot responded that it is, yes. Especially since it is now on the verge of a massive surge in value.
Conclusion
LUNA Classic has seen tumultuous times. In fact, the past month has seen the token rise by a whopping 215%, with the previous week seeing 73% gains alone. While price correction might be incoming, given that the overall market has recovered somewhat, LUNC is also likely to follow its suit.
While ChatGPT can be a helpful aid when making trading decisions, it is always important to use your discretion and DYOR (Do-Your-Own-Research) before making any investments or trades. Especially since the crypto-space remains very volatile.
