Terra Classic (LUNC) has a current market cap of $3.3 billion, about 12 times more than Terra LUNA’s $258 million.
Plans to revive the previously ‘dead’ Terra Classic chain have been put into action, resulting in a nearly 1,900% profit since bottoming out at $0.00004885 on June 8th. The community-driven project has implemented several initiatives to increase demand, including token burning and attractive staking opportunities.
according to LuncStaking_Bot, 8.8% of the LUNC supply is currently staked. This ratio has steadily increased since staking was launched on his August 27th.
The implosion of the Terra ecosystem was triggered when the UST stablecoin lost its dollar peg in May. UST operates under an algorithmic pegging mechanism to adjust supply and demand in tandem with LUNA tokens, and thus its price fluctuates.
Below $1, users will start creating LUNAs and burning USTs. A significant drop below the peg price resulted in a massive issuance of his LUNA, increasing supply and causing the token price to crash.
The resulting massive outflow of capital leaving the ecosystem and subsequent liquidity squeeze impacted the rest of the market. Since then, numerous fraud allegations have been made against Terra founder Do Kwon and his senior team. This included money laundering by shell companies and siphoning of users’ funds. But worst of all, Terra was a scam from the start.
The community accepted Do Kwon’s suggestion to fork the chain and create Terra LUNA. The original chain he rebranded as Terra Classic (LUNC) left development and governance to the community.
Many thought that LUNC would fade and disappear, but recent initiatives have seen its token price explode and its market cap ranking higher. LUNC is currently ranked the 26th largest chain, while his LUNA, led by Do Kwon, ranks his 116th.
FatManTerra Condemns Terra LUNA Project
Terraform Labs Associate Maslin Edwin posted a community update on September 7th detailing the latest developments in the Terra LUNA ecosystem.
We mentioned a number of updates including new staking pools, wallet integration, exchange listings and information on recent governance proposals.
But in response Fat Mantera He tweeted that he found it “funny and boring” to go about business as usual without acknowledging the damage caused by the Terra implosion.
He signed off, saying that “we” would never forget what happened.
It’s both funny and annoying to use a new network as if nothing happened. There were no casualties, no losses, no suicides. All his UST scams are happily ignored. This tactic doesn’t work. I remember what Terra really was. we always do.
— Fat Man (@FatManTerra) September 7, 2022