Binance announced that it will halt trading of Terra Classic (LUNC) from 21:00 UTC on August 26. Terra Luna climbed over 19.9 per cent in the last 24 hours as of 5:05 pm.
Terra network will undergo an upgrade for LUNC validators, which have successfully passed a resolution to improve the network to v0.5.22. All the validators will upgrade before the network reaches the block height of 9,109,990 at around 22:00 UTC on August 26.
— luncvalidator (@luncvalidator) August 26, 2022
“Recently, Terra Luna Classic has gone from 10,000 points per coin to 12,500 points per coin,” said Rajagopal Menon, vice president, WazirX.
”In May, the buzz was about why Terra Luna Classic was falling. Then the debate slowly shifted to Terra Luna Classic vs Terra Luna 2.0, which one’s going to be better. On August 26, staking has been re-enabled on the Terra Luna classic blockchain and Orion Money has officially downloaded version 22 to re-enable staking and include the burn tax.
“Investors are buying in anticipation of the price rising from around 8,000 points per coin to around 10,000 points per coin, then to 12,500 points per coin today.” he added.
What Happened With Terra Before?
On May 6, 2022, Terra Luna crashed, causing it huge losses. A chain of events led to this fall and it is widely speculated that, when Bitcoin’s price dropped 8.4 per cent on May 6, 2022, with the news of US Federal Reserve increasing interest rate, big investors of Terra UST, an algorithmic stablecoin tied to the Terra Luna crypto, panicked.
Early on May 7, 2022, several crypto whales sold $285 million worth of UST stablecoin on Curve, Binance, Anchor and other platforms. With this sale, they simultaneously also started shorting Terra Luna crypto.
These events, coupled with the overall negative sentiment in the crypto market at the time, led to the fall of Terra UST stablecoin, losing its dollar ratio and Terra Luna value significantly.
The Terra Luna Foundation tried to control the freefall in their cryptocurrencies by deploying close to $1.5 billion but even that could not stop the fall.
“The LFG Council just voted to deploy 1.5B (1.5 billion US dollar) in capital (0.75B in BTC, 0.75B in UST) to allay market concerns around UST. Over the past several days, market volatility across crypto assets has been significant. The market turmoil is also reflected by the past week’s uncertain macro conditions across legacy asset classes,” read a Tweet of the Luna Foundation guard on May 9, 2022.
“Terra Foundation’s old prodigy Luna Classic (LUNC) has been reduced to fractional cents and a sudden rise in such miniscular tokens cannot be ruled out. It is past its prime and the foundation is trying for damage control,” said Dileep Seinberg, founder & CEO of MuffinPay, a crypto platform. However, “a sharp rise in the near-term cannot be dismissed but it won’t really help it to gain the previous highs again that soon,” he added.