In the world of cryptocurrencies, Terra Luna Classic (LUN) has been making waves recently, as its price has been on the rise following a surge in trading volume. With the volume of trading reaching $100 million, many investors are speculating that the price of LUN could reach $1 in the near future.
This prediction has created a lot of excitement and buzz in the cryptocurrency community, as people wonder whether Terra Luna Classic will continue to rise in value, or if this is just a temporary uptick.
In this article, we will explore the factors driving this recent surge in price and what the future might hold for Terra Luna Classic.
Terra Classic Upgrade: What You Need to Know
On February 15, the Terra Classic blockchain was updated to version 1.0.5, which was successfully implemented at block height 11,543,150. This update is significant as it enables Binance, a popular cryptocurrency trading platform, to resume burning Terra Classic (LUNC) tokens. Additionally, the update aims to address a state-breaking bug in the upgrade keeper, which is responsible for maintaining the current version mappings of various modules in the application memory.
Overall, this update represents a positive development for the Terra Classic community, as it not only improves the platform’s functionality but also enhances its security and reliability.
In the past week, the Terra LUNA Classic community burned over 15 million LUNC tokens, which is an increase from the 12 million LUNC tokens burned in early January. This milestone, which was set by the community, indicates progress toward the goal of burning billions of LUNC tokens by 2023. The community believes that regular burns, along with reviving the utility of LUNC, will enable the token’s price to reach $1 by the end of 2023.
However, this week, the community was only able to burn 5 million LUNC tokens in the absence of Binance’s monthly LUNC burn mechanism. Despite the lower burn rate, the community remains optimistic about the token’s future and is looking for ways to increase burning and utility going forward.
The price of LUNC/USD has increased during the market rebound, bringing Binance burns closer to the ecosystem with a new update.
SEC Files Lawsuit Against Do Kwon and Terraform Labs
On February 16, the US Securities and Exchange Commission (SEC) filed a lawsuit in the US District Court for the Southern District of New York, accusing Do Kwon and his company Terraform Labs of violating the registration and anti-fraud provisions of the Securities Act and the Exchange Act. The SEC alleged that Terra’s unsuccessful algorithmic stablecoins – LUNA, Wrapped LUNA Classic (WLUNA), and TerraUSD (USTC), formerly known as Terra – were securities subject to US securities laws.
The SEC has claimed that the cryptocurrency founder and his company were involved in securities fraud in what the regulator described as a multimillion-dollar scheme. According to the SEC, they repeatedly guaranteed investors who were looking to make a profit that the tokens would appreciate in value.
Do Kwon, the founder of Terra, and the Terra Classic community have previously claimed that the Terra Classic community and developers are separate from Terra. However, it seems that Do Kwon still exerts influence over Terra Classic. The SEC’s lawsuit against Do Kwon, Terraform Laboratories, and affiliates caused a significant decline in the price of LUNA/USD.
Terra Classic Community Approves USTC Repeg Proposal
On February 3, Wu Blockchain reported that ‘the signal proposal to re-peg with USTC submitted by the LUNA community has been approved.’ With the aid of the code modification Exchange Rate Modifier (ERM) to re-peg USTC, the proposal aims to upgrade the Terra Classic stablecoin algorithm to TerraClassicUSD (USTC) coin.
In May 2022, the old UST stablecoin lost its peg to the dollar, causing the Terra ecosystem to collapse. Afterwards, they established a new Terra chain called Terra (LUNA), and the previous chain was renamed Terra Classic with the tokens LUNA Classic (LUNC) and Terra Classic USD (USTC).
Burning tokens can increase prices by reducing market oversupply, which is the only way that altcoins can survive. Therefore, the approved proposal to re-peg USTC is highly positive for LUNA Classic (LUNC)/USD, as re-pegging the stablecoin would necessitate a substantial LUNC token burn.
Terra Luna Classic Price Prediction
On February 19, LUNA Classic (LUNC)/USD started trading at $0.00017170. Currently, it is trading at $0.00017060, which represents a 1.29% increase over the previous 24 hours. The value of LUNC/USD has fluctuated between a high of $0.00017290 and a low of $0.00016980. Additionally, over the last week, its value has risen by more than 1.7%.
On a daily timeframe, the LUNA /USD pair is being supported by an upward channel near the $0.0001665 level, and closing above this level may cause the LUNC price to rise toward the $0.0001750 level. On the upside, if the price breaks above the $0.0001750 level, it may continue to rise toward $0.0001825.
Conversely, if the price falls below the $0.0001665 level, it may drop further toward the $0.0001615 or $0.0001540 levels. We should keep an eye on the $0.0001665 level for a bullish trade and vice versa.
This article was originally published by Crypto News.