What is wrapped Luna?

It is a form of the LUNA Classic token that exists outside its native Terra Classic blockchain network. It is pegged to the value of Luna Classic This was designed to enable investors to use their LUNA tokens on popular DeFi protocols. The wrapped coins can be restore for the cryptocurrency. The interoperability between blockchains is increased by using the wrapped coins. Wrapped LUNA is etched on Ethereum according to ERC-20 protocols.

Difference between Luna & WLuna

LUNA and WLUNA are commutable with each other LUNA is a token that exists on the Terra network which is a separate blockchain network from the Etherum (ERC-20) network While Wrapped LUNA is token that is used to represent LUNA on the Etherum network.

LUNA is the main token for the Terra ecosystem whereas WLUNA is and Etherum ERC20 token that cannot be used in the Terra ecosystem because Terra ecosystem cannot be connected to ERC20 network since Wrapped LUNA does not have many useful cases as it is only mainly to represent LUNA on the Ethereum network and it can also be used In some DeFi applications. A liquidify pool can also be created by using WLUNA on Uniswap.

Binance Smart Chain Allow you to transfer a tokenised version of LUNA on this network by using Wrapped LUNA Since Binance does not support the Binance Smart Chain version of LUNA so You can only deposit or withdraw the native Terra or ERC20 versions of LUNA from Binance.

You can also convert WLUNA to LUNA by sending WLUNA to such platforms that support both Etherum ERC20 and Terra versions of LUNA Kucoin, Gate.io and Binance are the platforms that supports both the versions of LUNA or you can use a Terra bridge to convert from Etherum ERC20 to Terra If you are using Binance Platform to send LUNA via the terra network to other exchange platform you won’t need to add a memo you only need to include a memo on sending LUNA to Terra station.

Founder profile wrapped Luna

Blockchain network Terra was founded by South Korean developer Do Kwon. Kwon suggested the use of an algorithmic dollar-pegged stablecoin to power transactions on and off blockchain networks. 

His company attracted more than 40 million users to work with the company at its launch in 2018. It also raised $32m from various investors including Binance, Arrington XRP and Polychain Capital.

He studied computer science at Stanford University in California between 2010 and 2015. He is popular to have an outstanding personality and has used Twitter to express his opinions about the Terra ecosystem on many occasions.

After the collapse of Terra, many investors have filed lawsuits against Him.

He died on 12 June denied claims that he allegedly cashed out $2.7bn in the months leading up to the collapse of Terra.

History of wrapped Luna

It was situated in August 2021, It is a version of the LUNA Classic token outside it blockchain which is the native cryptocurrency of the Terra Classic blockchain. These tokens were designed to maintain the dollar peg of Terra Classic’s algorithmic stablecoin TerraUSD (UST). 

The Terra Classic ecosystem collapsed in early May 2022 just after the UST suspended the trade at about $0.02 by the end of the month and after that all the UST holders started withdrawing their UST funds in a panicked exit from Terra’s ecosystem. The founder of LUNA gave a plan for the network to endure the hard fork. His idea was passed and the LUNA2 cryptocurrency was accepted which exist without its failed algorithmic stablecoin. The Chain was renamed as Terra Classic and native token as LUNA classic.

WLuna vs WLuna

WLUNA and WLUNC both are the same token with the same contract address but different exchanges use different branding. The platforms that uses WLUNC as the token name are Binance, Kraken, Uniswap and FTX and Coinbase is the only platform that uses WLUNA as the token name.

Risks of wrapped Luna

Following are the risks that associated with investing in WLUNA. First of all, Since it is an ERC20 token, it depends on the same price volatility as other Ethereum-based strength, as a wrapped strength, it depends on the stability of the Luna Classic price in order to maintain its peg. lastly, there is always the risk of hacking the contract or otherwise compromised, which would result in loss for investors.

Future of Luna

The new community vote proposed by the founder of LUNA saw the Terra blockchain split in two separate chains. The proposal was passed on 26 May and the old chain was renamed to Terra Classic and its native token as Luna Classic. 

Both the chains operate separately and exist side by side to each other. The new Terra 2.0 chain has also decided to ditch the algorithmic UST stablecoin and has put a recovery plan in place, so the future of the Terra Classic chain remains in limbo.

Wrapped LUNA price prediction for 2023-2025 and beyond

Following are the reasons that why WLUNA is trading lower and not rising over the last few days.

Wrapped Luna price movements are totally dependent on the price of Luna Classic which is more or less a community-driven cryptocurrency and its price movements are totally based on the activities of the Community the LUNC community has organized itself quite well since last four months and has not taken completely control of the Luna Classic Crypto.

Every time the LUNC community adept something convincing, the prices increases to much higher for. Eg: Initial round of burn, the appointment of validators etc. For the last few days and weeks, no action have surfaced in the Community that could have a important impact on price. 

WLUNA/ WLUNC Wrapped Luna Classic will trade higher if there are attractive initiatives within the community.

The Wrapped Luna Price Prediction 2022 is $0.000222 whereas the Wrapped Luna Price Prediction 2023 is $0.000337 and the Wrapped Luna Price Prediction 2025 is $0.000589 and it would be $0.00220 after 2025 and beyond.