What is LUNC Coin? Critical warning and curiosities for LUNC

What is LUNC Coin? LUNC is the coin of the Terra Classic chain. Terra Classic is the older version of Terra 2.0, which was released a few...

Crypto Desk·September 15, 2022

What is LUNC Coin? LUNC is the coin of the Terra Classic chain. Terra Classic is the older version of Terra 2.0, which was released a few days ago.

Market capitalization: 930 million dollars
Circulating supply: 6.5 trillion LUNC
Total supply: 6.9 trillion LUNC
Highest price level: 119.18 dollars
Lowest price level: 0.00001675 dollars

As it is known, earlier this month, when Terra's algorithmic stable coin UST decoupled from the dollar, the price of LUNA, which was constantly printed to stabilize UST at $ 1, also suffered a huge loss in value. As a result, the entire Terra chain almost disappeared in a death spiral. Do Kwon, the founder of Terra, proposed a new chain as a solution. This was dubbed Terra 2.0. The new chain is called Terra and its token is called LUNA, while the old chain is called Terra Classic and its token is called Luna Classic. The supply of the old coin, Luna Classic, remained at 6.5 trillion as new ones were constantly being released to stabilize the UST price. The "Classic" suffix is thought to be a reference to Ethereum's split into Ethereum/Ethereum Classic after the DAO hack in 2017. Kwon on UST and LUNA collapse in "Terra's DAO hack moment" as the "most important thing in the world".

Which exchanges are LUNC Coin traded on?

While you can buy LUNA, the coin of the new chain Terra, on many exchanges, to follow Ieconomy official Twitter account!

Frequently asked questions

What is the difference between LUNC and the new LUNA token?

LUNC, or Luna Classic, is the native token of the original Terra Classic blockchain, which experienced a collapse in May 2022. The new LUNA token is the native asset of the newly launched Terra 2.0 blockchain, which was created as a reboot of the ecosystem without the algorithmic stablecoin that caused the original failure.

Why did the supply of LUNC become so large (in the trillions)?

The supply of LUNC expanded massively during the death spiral of the Terra ecosystem. To try and stabilize its failing algorithmic stablecoin, UST, the protocol minted enormous amounts of LUNA (now LUNC), leading to hyperinflation of the token's supply and a catastrophic drop in its individual price.

What caused the collapse of the original Terra (LUNC) ecosystem?

The collapse was triggered by the de-pegging of its algorithmic stablecoin, UST, from the US dollar. This event initiated a death spiral where UST's falling price caused the system to mint vast amounts of LUNA to attempt stabilization, which in turn crashed LUNA's price and destroyed investor confidence in the entire blockchain.

What is the 'Terra Classic' chain mentioned in relation to LUNC?

Terra Classic is the original blockchain that hosts the LUNC token. It is the legacy chain that remained after the ecosystem's collapse and the subsequent launch of a new chain, Terra 2.0. The 'Classic' designation is similar to other blockchain forks, indicating it is the original, unaltered version of the network.