Luna Classic jumps by 36% despite dynamic markets
Luna Classic, which was previously known by the name Luna, jumps around 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 capitalization is 214, and the total supply of the token is around 6553750137259 (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 the month January 2018, and its mainnet was released in the month of April 2022; it is used to provide stablecoins tied to the US dollar by managing the $1 price with an algorithm. Moreover, the crash of the UST and a massive supply increase of the Luna token has damaged its price beyond repair. It is also essential to note that Luna was hard forked to create a new token with no links to the UST and the old token became a Luna Classic.
The project was funded by Daniel Shin and Do Known, and their goal was to increase the adoption of crypto usage and price stability as well. Moreover, the unsustainable interest rates offered by the 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 led to a death spiral which the team could not 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 a Luna Classic?
Luna Classic’s huge supply and zero practical use make it an absolutely bad investment. It is very clear that the investors will never see price action like before. These small dumps and pumps, in their price action, are going to come. Moreover, 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 nothing back it and bad market conditions?
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
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