Despite what has happened to LUNC, the community has led initiatives to help it come back to life. While LUNC was flying to the moon, a court ordered the arrest of Do Kwon for practices linked to the LUNA collapse.
In late August and early September, the price of Terra Luna Classic (LUNC) increased to USD 0.00053514. However, it subsequently dropped sharply until rising by 30% to around USD 0.00032 in 24 hours.
That reason and the rumors about the project seeking to come back to life led to conducting the following analysis. It is relevant to remember that Terra (LUNA) and the stablecoin TerraUSD (UST) collapsed in April and May.
The measure to maintain the stability of UST failed in different ways, driving its value to plummet and the overall crypto market to crash. However, the project still tries to survive by putting its token under the name of LUNC.
Over the last few weeks, the price of LUNC has increased by over 100% despite experiencing a bearish phase. The latest chart shows that it formed a falling wedge pattern, causing it to enter the bullish trend.
LUNC is trading below the 100- and 50-day exponential moving averages (EMAs) while trying to break above the 20-day EMA.
Terra Luna Classic Promises to Be the Rebirth of TerraClassicUSD
Despite what has happened to LUNC and the arrest warrant against Do Kwon, the founder of Terraform Labs, the community still believes in it.
Various community-led initiatives have boosted the price of LUNC over the last few days. The project is now trying to come back to life away from the Terraform Labs organization and its founder.
Some cryptocurrency exchanges have accompanied one of these initiatives by promoting a commission for burning LUNC. In addition, various staking projects have emerged to encourage the hoarding of LUNC tokens among investors.
According to the TerRarity.io platform, 3,967,138,030 LUNC units, equivalent to 0.0574% of the total supply, have burned.
Away from Terraform Labs and its developers, LUNC seeks to resurface with community efforts. Those efforts appear in a roadmap that aims to make TerraClassicUSD (USTC) what it once promised.
However, recovering its reputation is not the only complex challenge it has to face. It also needs to achieve functionality like that offered by Terra while being secure to prevent the story from happening again.
The Price of LUNC Rises as Do Kwon Goes to Prison
While the price of LUNC was flying to the moon, a South Korean court ordered the arrest of Do Kwon and other Terraform Labs members. They charged the former CEO with illegal practices linked to the collapse of LUNA.
However, since Kwon is in Singapore, nobody can arrest him due to bureaucratic problems between both countries. The South Korean prosecutors requested his extradition through Interpol and the revocation of his passport through the Ministry of Foreign Affairs.
Meanwhile, LUNC is trading at around USD 0.0002975 and has accumulated a 3% loss over the last 24 hours. While its daily trading volume is above USD 542.43million, its market capitalization is about USD 2.06 billion, according to CoinGecko.
By Alexander Salazar