Terminology Explain (Terra, LUNA, UST, TerraUSD)
- Terra is the blockchain that houses the LUNA coin and associated stablecoins, including TerraUSD (also called UST)
What happened? Why is there Luna and Luna Classic?
- Luna crashed in May 2022. This may have marked the largest token collapse in crypto history. The community decided to stay focus in reviving the token. As a result, there are two Terra blockchains operating in parallel:
- The old (original) Terra network with the token renamed to luna classic (LUNC) and UST tokens.
- A newly launched blockchain with a native token called luna (LUNA).
- This new token, housed in a new blockchain with a fork from the previous blockchain were then distributed among the community members.
Luna Classic (LUNC)
- Created to be the first Terra Luna Blockchain native coin and launched in 2018.
- Original Terra Luna coin that was left behind after the recent UST/Luna collapse.
- Establishment of a new Terra chain.
- Terra Luna Classic (LUNC) is one of the world’s top 1,000 cryptocurrencies, with market size of $768,841,921.
- Terra Luna Classic is currently $0.00005956, a -17.599% decrease from yesterday’s price.
- Had a circulating supply of over $40 billion.
Difference between Luna (LUNA) and Luna Classic (LUNC)
- Terra Classic (LUNC) and UST tokens are the old (original) Terra network tokens.
- Luna is a brand new blockchain with its own native cryptocurrency (LUNA).
- LUNA launched on May 28, 2022.
- Establish a new blockchain using a fork.
Use of hard fork
- A split in a blockchain network creates two separate networks.
- Significant modification to a network’s protocol that allows previously invalid blocks and transactions to be valid.
The riskiness of Luna Classic
- It is unreliable.
- Little motivation to use it or develop anything on top of it.
- Luna Classic has already lost 100% of its value.
- LUNA2.0’s price dropped by 77%.
- The regenerated luna token is already available for purchase on exchanges. However, its value is crashing.
Luna Classic be considered a dead coin
- The old network is no longer supported by Terraform Labs.
- As a result of the transition to Terra 2.0, the number of developers working on the network decreased.
- The benefits gained by validators for keeping the network safe are reduced as the price of its native coin falls.
- Potential delisting due to significantly limited liquidity results in a large drop in the token’s price.
- The public’s trust in the project has suffered a setback.
