Terra Classic cryptocurrency: is it worth buying a coin

terra classic

There are always new products on the cryptocurrency market, and Terra Classic (LUNC) cryptocurrency is one of them. Terra blockchain has existed for quite a long time.

But the previous Terra blockchain token luna failed to live up to the hopes of its creators, and it crashed on the cryptocurrency market.

After LUNA was pegged to $1, the Terra blockchain developer decided to release an alternative. That’s how the LUNC coin appeared in 2022.

Despite the fact that the LUNC coin has many disadvantages and risks, it is in demand among ordinary users and large miners.

There have been some good trends recently – the value of LUNC has increased by 5% in 24 hours.

This indicates significant prospects for the cryptocurrency and the possibility that it has a chance to enter at least the top 10 projects of the cryptocurrency market.

What is Terra Classic

LUNC is a Terra Classic blockchain token that failed relatively recently with the previous coin.

But the creator of the blockchain has proposed a change in strategy to take the chance to bring the project back to life.

In May 2022, a project proposing to rebrand the Terra token as Terra Classic with a LUNC coin was introduced.

The community approved the updated and modernized project, resulting in the introduction of the LUNC coin to the crypto market on May 28, 2022.

Many users know about the collapse of the first token project, so at first, the novelty on the market does not cause much interest.

But the creators have found a solution to the problem. The main and only reason for the collapse of the first Terra token is believed to be the UST algorithm stablecoin.

The creator renamed it USTC, which allowed to make changes in the algorithm and eliminate previous problems.

Terra’s key features

Terra is a constant-value cryptocurrency designed for group acceptance. Stablecoins tied to fiat currency are used for operation. This project has many features, the main ones being the following:

  1. With the help of special algorithms and linkage to major world currencies, price stability is maintained.
  2. Focusing on tools that can be used on any e-commerce platform.
  3. The platform uses a special scaling function – senorage. As participant activity grows, the system independently produces and converts tokens.
  4. Providing a comfortable environment for financial innovation, which increases the GDP of the blockchain economy and makes the platform open to new projects.

Terra has improved its standard payment system using a single, efficient blockchain. Thus, users get a lot of benefits:

  • reduction of problems with the system;
  • fast transactions;
  • frequent discounts to participants.

The Terra payment system is supported by a group of Stablecoins linked to key fiat currencies. They are based on a protocol assigned to algorithmically support price stability by expanding or minimizing the money supply.

How is the security of cryptocurrency ensured

Terra’s blockchain uses a proof-of-stake algorithm, whereby token holders hold the tokens as collateral during the transaction.

Afterwards, they receive rewards that are equal to the volume of blocked tokens. For validators, the organization offers additional instructions that detail security practices.

Terra Classic’s blockchain has been repeatedly audited for security. The audit indicates a high level of protection of the system and customers’ personal data. Users do not have to fear confidential information and personal finances.

LUNC token forms

Currently, LUNC tokens are divided into 3 main groups:

  1. Disbanded. Can be transferred exactly like other types of tokens.
  2. Bonded. They are in staking and are capable of generating income for all participants in the process. Such tokens cannot be sold or moved outside of the system.
  3. At the stage of withdrawal from staking. The withdrawal process, or so-called unbundling, lasts for 21 days. During this period, the coins do not bring income to the owners, but it is impossible to sell them.
terra classic

Participants of the system and their features

The Terra system has a large number of participants, each of which is necessary to ensure the functioning of the system.

Validators

Validators are responsible for creating new blocks, maintaining nodes, and ensuring consensus.

The top 100 validators with the maximum amount of staking are considered active and have voting rights directly related to the number of assets.

Validators are remunerated for their work.

Delegates

Delegates are LUNC coin holders who have the right to transfer their token votes to other members of the network.

They share the rewards with the validators but are also responsible. This means that if a validator breaks the rules, the delegator will lose some of their profits as well.

In order not to lose their profits, delegators need to monitor validators closely and, in case of any problems, quickly transfer funds to another member of the system.

Validator slashing: what is it and why is it dangerous

Validators are responsible to other members of the network and can be punished if they fail to perform their assigned duties.

The punishment is slashing, which is a penalty or restriction of capabilities. Usually, slashing is applied when one identifier signs a block twice, fails to communicate with the validator for longer than the designated period or misses a set number of votes.

Prospects for the coin: what to expect in the near future

If we consider the market capitalization, the project Terra Classic is on the 216th place. It is believed that in the near future the price of the coin will reach $0.0002216.

Terra Classic Price Prediction
Terra Classic Price Prediction – Source: coinmarketcap.com

On the other hand, if the pump-and-dump schemes continue to target the coin, the price could drop to $0.0000173. However, the average price could end up at $0.0000144 due to the limitations of the linear price forecast.

Terra Classic’s LUNC could peak at $0.000208 in 2024. However, if the crypto industry suffers significant reforms, including regulatory crackdowns by governments around the world, the price of LUNC could drop to $0.0001226.

Is it worth investing in the Terra Classic project

You can use other crypto-assets, such as bitcoin, as collateral for a Terra Classic loan. You can borrow Terra Classic at rates up to 11.7% APR.

Open an account, transfer your collateral currency to the platform, and then apply for a LUNC loan.

How to buy LUNC

The main way to buy this coin is through cryptocurrency exchanges offering comfortable and safe conditions. To date, Terra Luna Classic (LUNC) is traded on 32 exchanges, including:

  • Binance;
  • KuCoin;
  • OKEx and others.

The maximum trading volume is observed on the trading pair LUNC/USDT and reaches 248.3 million dollars (52% of the total volume at all exchanges).

How to exchange LUNC

If you need to exchange LUNC – you can use professional platforms. They offer a large number of currencies for exchange, offer up-to-date exchange rates, and a high level of personal data protection.

One of the safest and most comfortable platforms for exchanging LUNC is Wellcoinex.

The service offers instant exchanges, so users get maximum comfort. To exchange, it is enough to visit the official website, choose the best option for the transaction, and deposit funds.

Where to store LUNC

To store this token, the developers created a special Lunie.io wallet with a staking function. Users can create a staking portfolio, participate in it, and manage funds.

The wallet also sends instant notifications of all changes to the account. The app is currently available to download for smartphones, and there is also a web version of the wallet.

Conclusions

The LUNC cryptocurrency is very popular, even though the Terra blockchain has already experienced a failure once.

Nevertheless, the developer has improved security, eliminated problems with the Stablecoin algorithm, and made a number of innovative innovations.

Thanks to this, LUNC is successfully moving up in the ranking of cryptocurrencies and may soon become one of the most profitable crypto-projects.

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