Terra classic price prediction: What is terra classic (LUNC)?
By Peter Henn
Updated
Terra classic (LUNC) is the rebranded version of a cryptocurrency whose collapse caused all kinds of market problems earlier this year.
Let’s take a look at its story so far, and also cast our eyes over some of the terra classic price predictions that were being made as of 2 December 2022.
Terra classic explained
Terra classic, known by its ticker handle of LUNC, is the native token of the Terra Classic blockchain. This blockchain, formerly known as Terra (LUNA), was created by crypto entrepreneurs Daniel Shin and Do Kwon in 2019 to help create a stablecoin, known as terraUSD (UST). USTs were minted by burning LUNA and could also be swapped for LUNA.
The idea was that, if the UST value rose above $1, the equivalent value of LUNA would be burned, which minted more UST, making it less valuable. On the other hand, if the UST price fell below $1, they were swapped for LUNA, which in turn made UST more valuable.
This seemed to work well until May 2022. TheTerraUSD ecosystem then saw capital flight, after the depegging of UST and a plunge in the price of LUNA.
Investors who were once drawn to near 20% returns on UST deposits began to sell their UST tokens in a frenzied exit, as UST started losing its dollar peg on 9 May 2022. As more UST holders sold their tokens, LUNA, which was designed to be a balancing token to help maintain UST’s dollar peg, saw hyperinflation.
Crypto market turmoil
Between 9 May and 12 May, LUNA lost nearly all of its value as it dropped by 99.98% from about $64 to $0.0087. UST also plunged and, with the collapse causing turmoil in the crypto market, something had to be done.
The Luna Foundation Guard announced that there would be a hard fork, with the new blockchain kept on as Terra, and a new form of a LUNA coin (LUNA2).
However, these plans were swiftly changed and it was announced there would be a new blockchain. It was also announced that the original form of the blockchain would be known as Terra Classic. Meanwhile, UST would be rebranded as USTC, and was designed to move away from being an algorithmically-backed stablecoin to being one backed by collateral.
The first block of the new Terra blockchain was minted on 28 May and, since then, what was once LUNA has become LUNC, a cryptocurrency run and operated by its own community.
There was something of a twist in the tail when, on 26 September 2022, South Korean authorities asked for Kwon, whose whereabouts are currently unknown, to be put on Interpol’s red list.
Terra classic price history
LUNC price history from launch to present – Credit: CoinMarketCapWhile past performance should never be taken as an indicator of future results, knowing LUNC’s price history can give us some useful context when it comes to either interpreting an already-existing terra classic price prediction or making one of our own.
We are going to focus on the LUNC coin as it has existed since May 2022, but it is useful to note the highlights of its previous incarnation.
When terra first came onto the open market in July 2019, it was worth around $1.30. This price soon proved to be something of an overvaluation and it fell to below a dollar, where it stayed until early 2021, when the token broke over $1 in January and moved to reach a periodic high of $22.33 on 21 March.
There was a drop-off over the following months, and a return to form later in the year, hitting a high of $103.33 on 27 December.
What was then known as LUNA enjoyed some notable price action in the first few months of 2022, reaching an all-time high of $119.18 on 5 April. Following the crash, it sank to an all-time low of $0.00001675 on 13 May.
On 28 May, the day that the new LUNA came into being and the old one became LUNC, the coin closed at $0.00009566. The news that the Celsius (CEL) crypto-lending platform had cancelled withdrawals confirmed the bear market, sending LUNC down to a low of $0.0000517 on 18 June. In late August, the price shot up to close the month at $0.0002252.
The announcement of proposals to introduce a 1.2% tax on transactions on the blockchain saw terra classic reach a high of $0.0005888 on 8 September 2022. The proposals went through on 21 September, but LUNC’s price dropped, to around $0.000185 on the morning of 26 September 2022.
By lunchtime that day, however – after the news that the South Korean authorities had contacted Interpol about Kwon and, perhaps more importantly, after Binance (BNB) announced that it was to put in place a 1.2% burn on LUNC trades – the price shot up, with the crypto trading at around $0.00031.
On 2 October 2022, it hit a high of $0.0003613, before settling down to trade at about $0.00029 on 12 October. Following the collapse and bankruptcy of the FTX (FTT) exchange, LUNC dropped to a low of $0.000148 on 22 November before making something of a recovery to $0.0001658 on 30 November.
The following day, it emerged that Binance had burned more than six billion LUNC, sending the price up significantly and, by 2 December 2022, it was worth $0.0001805.
With 5.9 trillion LUNC in circulation out of a total supply of just over 6.8 trillion, it had a market cap of just over $1bn, making it the 39th-largest crypto by that metric.
Terra price prediction round-up
Let’s take a look at some of the terra coin price predictions that were being made on 2 December 2022. It is important to point out that price forecasts, especially for something as potentially volatile as cryptocurrency, are often wrong. Long-term crypto price predictions are often made using an algorithm, which means they can change at a moment’s notice.
CoinCodex had a somewhat optimistic short-term terra classic crypto price prediction, saying that it thought the coin could reach $0.000187 by 7 December and $0.000222 by 1 January 2023. The site’s technical analysis was rated as neutral, with 15 indicators making bullish signals against 12 making bearish o1nes.
DigitalCoinPrice had a LUNC crypto price prediction that saw it potentially trade at around $0.000212 this year, before reaching $0.000453 next year and $0.000627 the year after that. By 2025, the site said, LUNC could be worth $0.000780. In 2027, the forecast suggested LUNC could be worth $0.000948, moving to $0.00133 by 2028 and potentially closing the decade at $0.00188.
The site then went on to make a terra classic price prediction for 2030 that said it could trade at $0.00255, before arguing it could potentially stand at $0.00346 in 2031.
CaptainAltCoin was rather more downbeat in terms of its LUNC price prediction, saying the coin could fall to $0.0001 by January 2023 and only recover slightly to $0.0002 by December 2023. Its terra classic price prediction for 2025 said the coin could grow to hit $0.0003 but that was as positive as this prediction got, since the site went on to predict that LUNC could lose all its value by December 2027.
There were no signs of hope in its 2030 forecast or its terra classic price prediction for 2040, either, confirming that the site believed LUNC could remain a dead coin.
Finally, Wallet Investor was bullish when it came to making a terra classic price prediction for 2023. The site said the coin’s value could rise to $0.000499 by December 2023, and potentially move to $0.00186 in five years’ time.
When considering a LUNC coin price prediction, it is important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. Never trade with money that you cannot afford to lose.
FAQs
Is terra classic a good investment?
It is difficult to say. A lot will depend on whether the burning of taxed coins can help drive both the price of, and the demand for, LUNC.
Remember, you should always carry out your own thorough research before making an investment. Even high market cap cryptocurrencies have proved vulnerable to the current bear market, so investors should be prepared to make losses and never purchase more than they can afford to lose.
Will terra classic go up or down?
It is hard to tell with a Terra crypto price prediction. While sites such as DigitalCoinPrice were optimistic as of 2 December 2022, the likes of CaptainAltCoin struck a far more bearish note. It is important to keep in mind that price predictions are often wrong, and that prices can go down as well as up.
In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether LUNC is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. Do not invest money if you could not afford to lose it.
Should I invest in terra classic?
This is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research.
Never invest more money than you can afford to lose, because prices will go down as well as up.
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