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About LUNA
Following the failure of the Terra blockchain ecosystem in May 2022, the Terra Classic line as well as its tokens became in a state of uncertainty. In this case, the unique cryptocurrency together with its obverse version was kept by the initial developers during the same period as the newest coin LUNA, and the blockchain was formed.
But, obviously, according to the whole, it is still using the interest of traders after the release of the latest steaking function.
According to Caprice on December 16 tokens LUNA Classic (LUNC) and also LUNA wrapped (WLUNA) were traded according to the cost of approximately 0.0001555 and also 0.0001547 dollars accordingly, even though in such a case in the base of 2022 they reached highs of almost 120 dollars.
In this post, I will analyze the Terra ecosystem, its founders as well and the value situation in the wrapped LUNA token. In addition, you will find important announcements, chain information research as well and monitoring of the value of wrapped LUNA in 2022 and beyond.
What is Wrapped Luna?
Wrapped Luna is an Ethereum token formed to represent Luna on the Ethereum blockchain. It is a standalone ERC-20 token designed to monitor the price of Terra Luna.
Wrapped Luna was founded for the purpose that Luna owners have the opportunity to trade, hold, and participate in scattered economic dApps in Ethereum.
Users in addition have every chance to change WLUNA into Luna through a WLUNA companion as well as vice versa.
The theory of wrapped tokens can be in addition depicted as well as a tokenized model of another coin, usually found to the price of the asset that it assumes. These tokens can be redeemed or “deployed” by users in each period.
What Are Wrapped Tokens?
Wrapped tokens are numeric assets that are guaranteed by the price of another asset. For example, Wrapped Bitcoin (WBTC) is a token that is guaranteed by the price of Bitcoin.
If you possess WBTC, you, according to the essence, on the possibility of the condition in the main bitcoin, as well as this possibility of the condition in the main assets being able to be redeemed in each period. Get in your own hands thousands of DeFi tokens, including wrapped tokens, in Changelly DeFi Swap.
Wrapped tokens are in demand because they have the advantages of both crypto-assets, as well as classic assets – for example, wrapped tokens can be traded in exchanges, as well as all sorts of other crypto-assets.
However, as they are guaranteed by the underlying assets, they also have the stability of classic assets. Wrapped tokens give more ability to bridge 2 different blockchains. This makes wrapped tokens a tempting option for traders who want to get the best of both worlds.
WLUNC and WLUNA
WLUNC and WLUNA are the names of the same token, but different exchanges use different brands. Most firms, such as Uniswap, Kraken, and Binance, call it WLUNC, while others, such as Coinbase, use the name WLUNA. Capital investments in WLUNC are combined with certain risks.
First, since the token is known as ERC-20, someone, as well as other assets based on Ethereum, meets with the issue of volatility of value. In addition, being a wrapped asset, one is dependent on the stability of the initial LUNC token to strengthen its binding.
As a result, there is always a specific danger, meaning that the smart contract can be compromised or hacked. This can cause the loss of traders’ money. However, investments in smart contracts have significant popularity due to the convenience that they give users.
Even though tokens LUNC and WLUNA are called to keep the binding in the ratio of 1:1, there is a tendency to deposit them because of the lack of liquidity.
According to DeFi, this is because WLUNA is available only in the platforms of dispersed exchanges (DEX) and also has significantly lower liquidity in comparison with the token Terra Luna Classic (LUNC).
However, the increasing popularization of dispersed capital (DeFi) can help in this problem. There is a possibility that dispersed exchanges will use huge popularity as the crypto community leaves concentrated platforms.
Wrapped LUNA price prediction for 2023 and beyond
On December 16, 2022, Wallet Investor’s algorithm-based simulation service showed a bullish monitoring of WLUNA’s value.
Relying in consideration of the dynamics of the value in the past, Wallet Investor predicted that through time the mediocre value of WLUNA can form Sixty dollars.
Monitoring the value of LUNA in 2025 time implied that by the end of the year, the value of the token will surpass Two hundred dollars.
DigitalCoinPrice is less optimistic about WLUNA’s prospects. According to its monitoring of the value of the cryptocurrency LUNA in 2025 time, the median value of the token in this year will be $ 0.000183.
Monitoring the value of LUNA in 2030, formed by DigitalCoinPrice, implies that the token will rise to a typical value of $0.00221.
Ultimately, according to Gov Capital’s monitoring, the wrapped value of LUNA in 2023 through time will trade at a degree of $0.000589. Monitoring of LUNA token value in 2023 time besides implies that through 5 years the value of WLUNA can form 0.00189 dollars.
It is necessary to take into account that the WLUNA cryptocurrency value monitoring, based on the specialist and also methods, has all chances to be incorrect and also has all chances to change in each period.
Monitors are not obliged to replace their studies: Constantly shorten your expertise and also do not forget that the resolution regarding trading or investing must be depending on your risk tolerance, skill in trading, portfolio size, and investing more.
Wrapped LUNA (WLUNA), Explained
Wrapped tokens are a representation of a cryptocurrency that is in no way dependent on its initial blockchain. Wrapped tokens have the same price as the underlying cryptocurrency.
For example, Wrapped LUNA is a type of LUNA Classic token that is not interconnected with the Terra Classic blockchain. The price of Wrapped LUNA repeats the price of LUNA Classic.
Wrapped coins can be changed into the cryptocurrency they are supposed to be at any time.
In connection with the fact that independent blockchains are in no way formed to interact with each other, wrapped coins are considered a key component that makes inter-blockchain transactions easier. Like the ERC-20 token, WLUNA is based on the Ethereum blockchain.
FAQ
Is a Wrapped LUNA Classic (WLUNC) unit considered a sound investment?
In April, the value of one LUNA coin was approximately $116. In the final result, its price dropped down to a pittance together with zeros, after which it was already removed from the list of promotions.
Up to this point, the price of the coin increased along with a valuation of less than a dollar based on 2021 as well as made some individuals instant crypto billionaires.
As a consequence, Kwon started a winner with the goal of a lot of small cryptocurrency traders. There have been several media reports about ordinary people who became rich after investing in LUNAC or Wrapped LUNA Classic.
What happened with UST, right?
To visualize this crypto catastrophe, it is necessary to describe a little bit about stablecoins. Stablecoins are numerical units of money found in the most faithful fiat currency, such as the United States dollar. For the sake of clarity, Tether as well as USDC are pegged to the United States dollar. Resilient coins are a method of protecting cryptocurrency traders from value fluctuations.
Suppose a single Wednesday needs Thousands of dollars. A single Wednesday can be exchanged into a thousand USDC tokens. Stablecoins are a method for traders to hedge their bets against the volatility of cryptocurrency trading.
Even though the coin UST was also called “stablecoin”, it is it was guaranteed in no way physiological dollar, but the method.
Certain believed that Terraform Labs would be able to maintain the stability of the UST peg in the absence of the United States dollar as an additional copy along with the support of creative actions and also billions of dollars in bitcoin.
What was the reason for the failure of LUNA?
The algorithmic stablecoin of the Terra bond – TerraUSD (UST) – was responsible for the fall of the LUNA cryptocurrency. The most 2 billion dollars of UST.
UST existed unblocked (destroyed from the Anchor protocol) on May 7 and also instantly realized because of a hundred million. It is unclear whether this was a deliberate attack on the Terra blockchain or a response to the increase in profitable ponds.
What happened after LUNA collapsed?
The whole cryptocurrency exchange felt the results of the failure of LUNA, which happened if the exchange was previously very volatile and also felt the difficulties.
According to the analysis, as a result of the fall in the value of bitcoin after the failure of LUNA there was a loss of the bazaar transformation in the capital for approximately three hundred billion dollars.
