The Terra Classic (LUNC) collapse is still fresh in the minds of market spectators and industry regulators. Damage caused by this token could reverberate through this space for decades to come. LUNC was backed by a powerful algorithm, and in conjunction with Terra Classic USD (USTC), was once positioned as a major stablecoin solution. Instead, what is left behind is a ghost of a blockchain with a very uncertain future.   

Terra Classic (LUNC) Price Chart

Terra Classic (LUNC) is a representation of where we are in the timeline of blockchain technology. In recent years, more cryptocurrencies have crumbled into dust than can be remembered. However, while crypto enthusiasts rationalized that such events were things of the past — often citing how the crypto space has made progress in cleaning up its image — the LUNC debacle should not have happened. 

This moment in the history of cryptocurrency will be reflected on for years to come. The evolutionary path that technology takes can be as merciless as nature itself. Oftentimes in the arenas of tech or business, only the fittest, or most ruthless, survive. If your product has features or advantages that can be copied or adopted, competitors will do just that. From another perspective, if your software has vulnerabilities, it will likely be exploited by bad actors. 

Such is the life for the emerging innovators of the cryptocurrency space. If you want to survive in this hi-tech jungle, you must battle competitors, cyber miscreants, and the watchful eye of regulators as they peer from above like birds of prey. When we retrace the path of crypto’s evolution, it is littered with the remains of failed projects. However, in 2022, it feels like we should be well past mistakes of this magnitude. 

Here, we will take a look into the details regarding one of the largest collapses in cryptocurrency history. LUNC serves as a reminder of the true potential of this industry for both grandeur, and ruin. There are distinct parallels between this project and other famous examples that flew too close to the sun, like Ethereum Classic (ETC). This project has also lingered on like a phantom, stalking the shadows of its immensely successful counterpart, Ethereum (ETH). When all is said and done, what is left behind for the ecosystem or communities that supported these projects? 

What is Terra Classic (LUNC)?

The Terra Classic (LUNC) cryptocurrency is the original token of the Terra blockchain. It should not be confused with Terra (LUNA), or as it is sometimes referred to, LUNA 2.0. Terra Classic was created to work in tandem with the stablecoin Terra Classic USD (USTC), formerly UST. Currently, the USTC stablecoin has completely lost its $1 peg, and LUNC is adrift without direction. When we refer to the LUNC price analysis it is clear that this coin has seen better days. For newcomers to this space, the question remains: “how did we get here?”

Terra Classic’s history and origin

The story of Terra Classic begins with its counterpart, now dubbed LUNA. To avoid an additional layer of confusion and chaos, it must be noted that LUNC was originally titled LUNA, and the current LUNA is considered LUNA 2.0. To distance themselves from the failed chain, and reclaim the LUNA name, the original token was rebranded as LUNC. 

The inception of LUNC began in 2018 when the startup Terraform Labs was established. Soon after, the company raised $200 million and launched its first cryptocurrency, LUNC, (then LUNA). The idealistic founders believed that they could spread blockchain adoption by offering a stablecoin solution that incorporated the reliability of fiat currencies with the benefits and programmability of crypto. LUNC was also used as a trading pair for exchanges that enabled users to buy and sell crypto. 

The Terra Classic crash and exploits

Terra Classic began with grand ambitions. Its rise was meteoric, and its fall was twice as swift. In May 2022, the USTC stablecoin collapsed after failing to hold its critical dollar peg. The LUNC blockchain was halted soon after, and the resulting shockwaves wiped out almost $45 billion from its market capitalization. 

One of the main reasons for this USTC failure was its design. Analysts have been quick to point out that an algorithmic stablecoin without assets to back it is an inherently flawed design. Before this avalanche of selling pressure, crypto analysts brought attention to potential attack vectors in LUNC’s design. In hindsight, it seems as though these concerns proved to be accurate as a group or individual exploited the USTC coin. 

First, a major USTC selloff began using the Curve protocol, immediately causing a drop from $1.00 to $0.98. While this maneuver was initially brushed off by the founders of Terraform Labs, it would soon prove to be no laughing matter. The selling pressure snowballed over the next five days, USTC and LUNC plummeted in price as the panic spread among the community. Meanwhile, the LUNC and USTC algorithm continuously attempted to correct itself and regain its dollar peg. In a matter of days, LUNC became essentially worthless as USTC only retained the value of a few cents.

In the aftermath of this critical incident, Terraform Labs sought to move on with their new token, LUNA. This is a hard fork of the LUNC blockchain, approved by their community through a majority governance vote. However, even this new token was not without its controversy. When the eventual airdrop to LUNC holders was announced, a fake airdrop wallet was established, tricking users into thinking this was the official Terraform Labs wallet address. The scammers behind this incident then went on to convince users to send their real funds to this compromised address, which only exacerbated the situation.

Comparisons to Ethereum Classic (ETC)

The extreme failure of LUNC and Terraform Labs will live on in infamy. Comparatively speaking, it is one of the worst incidents in cryptocurrency history. Some analysts have gone as far as dubbing it Mt.Gox 2.0. However, a more astute comparison can be drawn to another forgotten cryptocurrency. 

In 2016, Ethereum (ETH), now the second-largest cryptocurrency by market capitalization, suffered its own exploit. Hackers made off with 3.6 million ETH tokens, leaving the community divided on how to continue. Some demanded that the Ethereum organization should roll back the transfer, a move that would certainly jeopardize the future of the network. Instead, the ultimate decision was made to hard fork the network into two distinct blockchains. One went on to be Ethereum, with the stolen coins returned to their rightful owners. The other would be known as Ethereum Classic (ETC) and is a symbol for those in the crypto space that truly believe in censorship resistance, and immutability when it comes to blockchain technology. 

The similarities between these two scenarios should be clear. Much like LUNA 2.0, Ethereum attempted to sweep this incident under the rug and leave it to be forgotten in time. Even the name Terra Classic seems to take direct inspiration from ETC. In the same manner, LUNC will remain in the ecosystem, a relic to be discovered by newcomers to the space. While LUNC may not enjoy its exchange listings forever, it is still currently available on CEX.IO, where users can buy Ethereum and ETC as well. 

How Terra Classic works

The main purpose of LUNC was to act as a buffer for the USTC stablecoin by helping it maintain a peg to the US Dollar. Each USTC was designed to be worth $1 and remain that way despite changes in selling pressure. Unlike other competing stablecoins such as USDC or DAI, USTC does not use reserve holdings of crypto or fiat to maintain its peg. 

Instead, LUNC helped achieve this goal through an algorithmic protocol intertwined with a network of arbitrageurs who buy and sell the token in accordance with USTC demand. Terra would also burn and mint tokens at will to maintain the balance. During moments when USTC was trading above the dollar, LUNC tokens would be burned and new USTC would be minted. The reverse was true in times when USTC was below the dollar, and new LUNA was minted as USTC was burnt. 

USTC stablecoin 

The USTC stablecoin now sits around $0.02, far below the $1 peg it was supposed to protect. Many believe it will never regain its footing. Support and trading pairs for USTC have almost completely evaporated from all major exchanges and services. Instead, parties in need of stablecoin solutions may choose to buy USDT, as these options have maintained their dollar peg with little disruption over the years. 

Who are the founding fathers of Terra Classic (LUNC)? 

The company behind Terra Classic and all Terra products, including the current iteration of LUNA, is Terraform Labs. ​​The organization was founded in Seoul, South Korea by Do Kwon and Daniel Shin back in 2018. Kwon is the current CEO and has taken the brunt of the blame from members of the crypto ecosystem as the most well-known face of the company.

Since its founding, Terraform Labs has embraced countless supporters and investors. Recognizable names include Blockchain.com Ventures, Polychain Capital, Coinbase Ventures, and more. These big names demonstrate how integral and well-connected Terraform Labs were in this space. 

Current LUNC price index

Although LUNC’s historical price all-time high was around $116, the token resided in a valley of despair. In early 2023 the price of the asset was around $0.0001 per token, though it may vary day by day. Many of LUNC’s biggest supporters have instead left the community and chosen to buy Binance Coin, buy Solana, or other top altcoin alternatives. 

How to buy Terra Classic

Traders commonly wonder how to buy cryptocurrency with a debit card. While we happily offer this service through our Instant Buy section for many of the top cryptocurrencies, LUNC is not currently available for direct credit or debit card purchases. However, you can choose to fund your account by buying BTC with a credit card, exchanging BTC to USD. 

Where to buy Terra Classic

Many cryptocurrencies can be purchased in our Instant Buy section, but we do not currently offer LUNC through this service. Terra Classic, along with many other cryptocurrencies, can be purchased on some other crypto exchanges. 

Many DeFi enthusiasts begin their crypto journeys by wondering how to buy Bitcoin or how to sell Bitcoin. This is fundamental knowledge to learn. However, many traders and spectators soon become interested in other altcoins as well. Explore over 200 markets on our Spot Trading platform. 

Terra Classic price history

The price history of LUNC is truly spectacular. It is reminiscent of the boom-and-bust stocks of the dot com era, or the infamous scandal of Enron’s widespread fraud. As the mainnet was launched in July of 2019, this is where the price history began. 

When we refer to the crypto price charts of LUNC, we can see that from 2019 to January 2021, the token trended between $0.18 and $1.30 or so with a market capitalization just below $400 million. If it had stayed in this range, LUNC would not have much of a story to share. However, the Terra Classic price over time enjoyed an exceptional rise. Though the price trend may make LUNC appear as though it has currently bottomed out, it could potentially still go lower and this may be the reason why analysts are hesitant to give any Terra Classic price prediction for the future.

In April of 2022, LUNC reached its all-time high of $116.11 per token, with a $40.88 billion market cap. This is a stunning figure, with buyers at $1 seeing 11,500% returns. However, just a month later, LUNC became effectively worthless after a disastrous collapse in price.

This means that a $1,000 acquisition would be worth 10 million tokens. At the height of LUNC’s value, the same amount of tokens had a value of $1.16 billion. LUNC will forever serve as a reminder of the potential pitfalls of the cryptocurrency space. 

FAQ:   

Where can I buy LUNC?

LUNC can be purchased on crypto exchanges. We have numberous methods available to buy crypto such as our Instant Buy section, but LUNC is not available for this method at the time of writing. You may however buy Dogecoin, BTC, ETH, or other crypto tokens. 

Where can I check the LUNC price? 

The LUNC price can be found in the spot exchange where you can also review the current LUNC price chart. In addition, you can refer to your wallet where it will display your current LUNC holdings, its token price, and the total value of your portfolio. 

What funding methods does CEX.IO support?

CEX.IO supports a wide range of funding methods such as credit/debit cards, direct bank transfers, Skrill, Apple Pay, Google Pay, PayPal, and more. Of course, every cryptocurrency that we offer can also be deposited into your wallet. For more information, refer to our Limits and commissions section.

How can I make deposits on CEX.IO?

Deposits can be made to the CEX.IO platform in several ways. The most direct and convenient approach is through our wallet interface, allowing for direct fiat or crypto deposits. From the CEX.IO App, you can also link your bank account or credit/debit cards for simple deposits and withdrawals.