The Luna Classic (LUNC) community continues to support the coin strongly. So, according to one of them, they won’t stop supporting the coin until they “pull off the greatest comeback after the total collapse in crypto history.” However, this can’t be achieved just by the community’s desire, and for the asset to regain its former power, it must be supported by external forces. We have listed all the possible options that could lead to the current growth of LUNC.
Luna has a large community because, before the collapse, there were many holders of the coin. Now they’re interested in growing it.
Communities are one of the bases of every cryptocurrency, which helps to promote the coin and its technological development. Their main ability is to influence mass acceptance of the coin. There are three types of communities:
- informational communities — are telling about cryptocurrency news;
- developers — are trying to work together to improve the blockchain technology of a particular coin;
- investment communities — are sharing tips on how to make money from the asset.
The last, being communities or individual users, often shill. That is, they promote cryptocurrency in social networks: they organize raffles for loyal community members and share new information. Publicity on the network allows the asset to get into trends, which makes its value grow.
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On January 20, we reported that LUNC was suddenly up 5,32%, from $0.0001618 to $0.0001704. The reason for this was the efforts of the community and developer groups, which helped the staking in Terra Classic increase to $900M.
Thus, community action and development is one of the key factors that can increase the value of LUNC.
$LUNC has one of the largest and loudest communities in #Crypto. The people will not stop until they pull off the greatest comeback in #cryptocurrency history. Witness greatness! #Crypto #Binance #LUNC pic.twitter.com/vma21Durfx
— LUNC Classic (@FXsystem4) February 5, 2023
Possible re-tying of LUNC to USTC stablecoin
Terra’s blockchain was controlled by two coins: LUNC, for staking and network management, and USTC, a stablecoin tied to the dollar. Because the company used a dual-token system, USTC and LUNC were linked. That is, an equal amount of Luna Classic was burned to create a new stablecoin. Thus, one USTC coin could be exchanged for a LUNC worth one dollar, and conversely.
In 2022, Terra collapsed due to the USTC’s detachment from the dollar, and with it, LUNC fell. On January 3, 2022, it became known that LUNC may return the tie to the stablecoin USTC (TerraClassicUSD). The news caused the value of both assets to rise by 16,71% and 53,78%, respectively.
Binding may affect the value of the asset, but exactly how is not yet clear. We asked the trader and LUNC enthusiast Classy about this and whether the coin has started a bull run.
According to him, the bull run has started, and its beginning was due to the fact that the community was waiting for a catalyst, which was probably the news about the tying of the USTC.
“The Layer-1 task force is currently ahead of schedule, the USTС re-peg proposal Ziggy is passing (it’s a text proposal and not a definitive integration) and the community is excited for the future once again,” he said.
Listing: exchange’s effect
A listing is the opening of trading for a particular coin on a cryptocurrency exchange. Users can then use the asset for their trading and investment transactions. After this process, the value of the cryptocurrency usually increases, especially if the coin is added to a popular exchange.
Analysts from Ren & Heinrich estimated that after listing on Binance, the value of an asset increased on average by 41% on the first day, and on the third day, the increase was 24%. And the positive effect lasts about 22 days after listing.
LUNC is already listed on Binance, but the coin cannot be used on Binance US. However, there are rumors that this may happen soon. Investor, NFT promoter, and schiller Hailey LUNC published a related post on Twitter.
— Hailey LUNC (@TheMoonHailey) February 6, 2023
According to Classy, Binance US listing is the ultimate catalyst to send the coin to the moon. At the time of writing, LUNC is trading at $0.0001859. After an increase of the claimed 41%, it will be worth $0.000262119.
— Classy (@ClassyCrypto_) February 5, 2023
A listing on Coinbase has a similar effect, and maybe an even bigger one. There, according to experts from the cryptocurrency research firm Messari, the average increase in five days after the procedure is 91%.
Coinbase has suspended trading on the exchange since May 27. However, there is a possibility that the platform will re-list. Decentralized research organization Kaj Labs has already approved supporting listing LUNC on Coinbase.
— KaJ Labs Foundation (@KaJLabs) January 30, 2023
And according to LUNC enthusiast Bull Lunc, Coinbase will soon announce a list of assets that it will list; supposedly, they will be cryptocurrencies that have no “momentum or buying power.”
“The team are under pressure everyday to list LUNC. This is because of whales [a wallet address that holds a significant amount of cryptocurrency; they can be individuals or organizations who often own more than 10% of crypto] who manipulate the platform and crash everything after a day or two. Listing coming soon but they cannot announce it,” he said.
After a rise of the mentioned 91%, LUNC may increase from $0.0001859 to $0.000355069.
Another factor that might affect the value of LUNC now is if the project team continues to burn coins. It’s a mechanism that permanently withdraws a certain amount of tokens from circulation. There are fewer of them on the market, and where there is less supply, there is more demand, causing the value to increase.
To slow the decline of the coin, Terra developers burned 50% of LUNC immediately after the crash. If more are burned, the value of the tokens will continue to rise.
According to Satoshi Talks, one of the first cryptocurrency communities, the aggressive token burning in January made LUNC one of the best performing altcoins on the market.
— Satoshi Talks (@Satoshi_Talks) February 5, 2023
At the moment, there are almost 6T LUNC in circulation. By comparison, Bitcoin is only 19.3M out of a possible 21M.
Overall economic situation
The general situation in the economy also affects the value of cryptocurrencies. So, at the beginning of January, the growth of all assets was caused by the news about the decline of the inflation rate in the U.S. (from 7,1% to 6,5%). After that, LUNC started an active growth and grew within several days by 25,8% from $0.0001534 to $0.0001931. And after the SEC announced the rate data, Luna Classic grew from $0.0001652 to $0.0002066 (+20,04%). You can see the current value of the asset on the chart below.
- Terra Luna Classic
- Price $0.00012
- Market Cap
This is what might be causing the LUNC to rise at this point. Which do you think is the most likely?