It was one of the key triggers behind the current bull markets. LUNA’s price had dropped from above $100 to below 0 in a matter of days, causing market panic in the market and leaving a string of losses in its wave. Crypto investors didn’t give up on this digital asset despite its collapse. The cryptocurrency’s gains have been double-digit in the past seven days. Here’s the reason behind it.
Terra Classic is Up
Investors in Terra Classic suffered huge losses after losing 100 percent of their token’s value within a few days. Investors who have stuck by the token have looked into ways to bring it back to its glory.
A 1.2% tax is one of the ways to increase the value of LUNC tokens. It is planned that this tax would be added to all LUNC transactions, including wallet and smart-contract interactions. Tokens that are generated by the tax will be sent to a wallet. The number of tokens currently in circulation will be reduced.
While this tax proposal still needs to be accepted by the government, it has had a positive impact on the market for digital assets. The price of LUNC rose 63.71% in the past 24 hours to reach $0.00567. The performance of cryptocurrency has been even better over a longer timeframe with gains of 93.32% (and 476.11% respectively) in the past 7 and 30 days.
LUNC, however, is not the only Terra token to benefit from the increased interest in the tax proposal. Terra Classic USD (USTC), is up by double digits over the last 24 hour. The ‘stablecoin,’ which had lost its peg to the US dollar, is currently trading at $0.04754 at the time of this writing.
Are You Ready to Buy LUNC Now?
Terra Classic’s high volatility has made it an attractive token for investors who are looking to try their luck and make some money in the short term. Because it is so popular and has a low price, the supply of Terra Classic remains high, which allows swings to occur wide. These fluctuations have led to gains that were recorded in the last month.
LUNC Trading at $0.0005 Source: LUNCUSD On TradingView.com| Source: LUNCUSD on TradingView.com
This volatility can make LUNC an appealing investment. However, it has been called gambling. David Gokhshtein (the founder of Gokhshtein Media) stated on Twitter that only gamblers invest in cryptocurrency. Investing in digital assets like LUNC is a risky investment. The chances of losing are very high.
Nonetheless, the crypto community is not abandoning LUNC. The world’s largest cryptocurrency exchange, Binance, announced early on Thursday that it would be carrying out wallet maintenance for Terra Classic’s LUNC.
Terra Classic’s LUNC also continues to maintain a higher market cap than the airdropped Terra LUNA. Both are at $3.48 Billion and the former has a market value of $263 M. Additionally, USTC’s current market cap is $465.78 million.
Featured Image from BTCC Chart from TradingView.com
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