The old Luna crypto currency has been renamed Luna Classic (LUNAC) after launch of Terra 2.0. The LUNAC rallied upto $0.0001778 on 30 May, 2022, and at time of writing is trading around $0.00014 with circulating supply of 6,536.40B. Terra Classic is up 69.90% in the last 24 hours.
Due to de-pegging of Luna from UST, coinmarketcap has already cautioned the investors for extreme price volatility of Luna.
Binance Listing of Luna 2.0
The major exchanges have already listed Luna 2.0 like Bybit, Kucoin and Huobi whereas Binance has made announcement of listing it on 31 May, 2022.
“Binance will list Terra 2.0 (LUNA) in the Innovation Zone and will open trading for LUNA/USDT and LUNA/BUSD trading pairs at 2022-05-31 06:00 (UTC)”.
After the Launch of Luna 2.0 on major exchanges it pumped and then dumped. Initially Luna peaked to $19.53 on Saturday, however latter the price dropped and settled around $5.90. So overall there is still a fear in the market about Luna 2.0 future. The investors are very cautious. Many have even burned a big amount of Luna classic despite Terraform Labs plan of offering airdrops to Luna Classic holders. The eligible users have to select Phoenix-1 network in their browser extension. The recovery plan is to go as following:-
30% as a community pool
35% to pre-attack LUNA holders
10% to pre-attack UST holders
10% to post-attack LUNA holders
Overall I see that LUNAC and LUNA 2.0 will behave same as Ethereum classic and Ethereum. The price may r=move sideways for quite sometime now and then move up.
LUNA seems to be regaining after last month crash from $80 to almost zero. On Sunday, LUNA rallied upward from $0.0001 to as high as $0.0002. This was a 100% gain in a single day and a lot of LUNA holders are still optimistic and hopes high for multiple upward rallies in coming days. The LUNA market cap jumped from $1 billion to above $1.2 billion. It is speculated that If the upside trend for the digital asset continues, it may touch soon $0.0005. However, many investors have called it a bear trap.
At the time of writing LUNA is trading at $0.00018 with market cap of $1,176.41M and circulating supply of 6,535.64B.
Why Are people burning LUNA?
In a bid to increase the price of Luna, a lot of holders have started burning LUNA by sending their tokens to a black hole address. Over 281 million LUNA have been permanently burned so far worth about $52,000. However, it has hardly impacted Luna circulating supply. (blockworks.co)
Do Kwon has warned the LUNA holders for this act and is against the idea of burning. In a twitter response he advised:
“To clarify, as I’ve noted multiple times, I don’t think sending tokens to this address to burn tokens is a good idea — nothing happens except that you lose your tokens,”
It has also been learnt that several investors have sued Terraform Labs CEO and his co-founder Daniel Shin for recent Luna crash. In this regard, South Korean police has taken steps to freeze Luna Foundation Guard assets. (watcher.guru)
Do Kwon the South Korean cryptocurrency developer and CEO & co-founder of Terraform Labs has come out with a ‘recovery plan’ to save Luna. The plan is based on revival of Terra network with a new ‘hard fork’. Do Known claims that his plan will solve the design flaws of Terra network.
LUNA Hard Fork
A hard fork can simply be explained as change to the blockchain’s underlying protocol (cointelegraph.com). In hard fork the rules governing the protocol are changed and may have a wide ranging implications on the cryptocurrency entire protocol. It is important to know that the hard fork would make previous transactions and blocks either valid or invalid. A hard fork is the result of several reasons like for adding new functionality to the protocol, improving the security , solving any disagreement in a cryptocurrency’s community or reverse transactions on blockchain.
For LUNA, Terra 2.0 hard fork has been proposed. The Luna hard fork will result in creation of new cryptocurrencies, Terra (LUNA) and a Terra Classic. The proposal was also tweeted by Do known on twitter.
However,the LUNA community is divided on the Luna hard fork proposal. The twitter voting for Luna will remain open for a week. Out of the validators 38 have voted Yes and 5 have voted no (including stake.systems, DSRV, Allnodes.com, SolidStake and Stake5 Labs). So far, 82.48% have voted in favor of the proposal while 17.7% have favored No with veto power.
Will the Luna Revival Plan Work?
Do Kwon has a big task ahead. His team has to build a new network and distribute 1 billion tokens to Terra’s stakeholders or affected parties. Kwon plans to air drop the new LUNA tokens to his developer team, stakers, holders as well as residual UST holders.
It is hard to predict whether Kwon Luna ‘recovery plan’ will work or not. Luna dropped from $80 earlier this month to almost zero last week. At the time of writing LUNA/BUSD pair is trading at 0.000132 on Binance. Even the recovery to $1 seems impossible. The current market supply of Luna is 6,533.67 billion, means a $1 value per Luna will result in its market cap of 6.53 trillion. The current total market cap of cryptocurrency is $1.29 Trillion. So those thinking of large gains from Luna must look in these simple mathematical calculations. The only possibility is burning large circulating supply of Luna. Moreover, despite a large market cap, trust building of investors and community will be hard after major crash of Luna.
Binance CEO Response on Luna Hard Fork
Crypto exchange Binance CEO Changpeng “CZ” Zhao also few days back revealed that:
“He’s ‘poor again’ after its Luna holdings once worth $1.6 billion crashed and are now worth just $2,200”
On Luna recovery plan Zhao commented in a tweet that:
Personal opinion. NFA.
This won’t work.
forking does not give the new fork any value. That’s wishful thinking.
one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).
Where is all the BTC that was supposed to be used as reserves?
Binance has also offered its BNB Chain support to Terra ecosystem projects. Zhao tweeted
Gwendolyn Regina, BNB Chain’s investment director, told Cointelegraph about the latest development and said:
“The Terra ecosystem has a lot of talented creators and developers, and our support is aimed at helping those builders and teams, building new projects on the BNB Chain. Hence, we are simply interested in supporting developers and projects so that they do not miss out on future potential.”