Terra Luna Classic (listed as LUNC) has been making headlines again, but this time for a good reason. The crypto coin has been able to do a massive recovery (all thanks to new policies and stringent actions taken by the team).
LUNC is up 80% in the month of September. If the trend continues, it will be able to reach its destined value point of $0.0005 by the end of the month, if not earlier. The coin’s rise is worth noting, especially because it happens when the whole of the crypto market is on a bearish run, and the industry leaders like Ethereum and Bitcoin have diminished in value.
Terra Luna Classic’s History
Terra Luna was able to reach a total valuation of $40 billion, with each of its tokens valued at $119 dollars during the first half of this year. However, this dream run quickly turned into a nightmare, with the values soon dropping to the ground, which made the investors suffer huge losses.
This was a shocker for both the investors and also the developers. A lot of changes were introduced, one of which was the rebranding of Terra Luna as Terra Luna Classic.
The coin has been designed as a deflationary one, with a percentage of it burning every time. This helps in stabilizing the value of the coin.
Burning Crypto Effect
One of the biggest reasons behind the growth of Terra Luna Classic in an essentially bearish crypto market would be the burning of these tokens. The burning of these tokens makes sure that the price of tokens in supply is in the accepted range.
Coins are burnt when they are sent from a crypto wallet to a burn wallet. A burn wallet is one that can receive funds but cannot transfer the same. So this essentially means that the coins are burnt once they are sent to the burn wallet.
The burning of coins decreases their supply which in turn increases their demand (a basic economic principle).
Terra Luna Classic started with a total coin supply of 6.9 trillion. The coin has been able to hit the total valuation of $2.5 billion, with each coin being in the $0.0004 range. The coin has witnessed a 1000% percent growth as its value increased from $0.00004.
The team has introduced a special 1.2% token burn on every transaction. This has been accepted by the biggest crypto exchange platforms like Binance and Kucoin. This would mean the burn strategy would run at full throttle.
Continual Growth
Terra Luna Classic has been able to make huge strides in growth, especially after the terrible crash. The current bull run, if continued, might help the coin cross the $3 billion mark within a few months. Some also believe that it would be able to once again reach its all-time high value of $40 billion.
This, however, might not be the case as the coin has been on a bullish run for quite some time, and the most an investor could have benefitted from the growth was in the past. The prolonged spike of the coin could also mean that it is about to end.
This means that an investor would not be able to benefit a lot by investing his money in the token now, as he could have made it in the earlier stages (10x returns). There, however, are some new and promising cryptos in the market that could be just the asset an investor is looking for to invest in the long run.
