What is Terra Classic (LUNC)?
LUNC (previously known as LUNA) is the original native token of the Terra chain. It was released in August 2018 and mainly used for the regulation of the value fluctuations of the TerraUSD (UST) algorithmic stablecoin pegged to the US dollar. Though the relationship between TerraUSD and LUNA was mutually beneficial because the price stability of both assets directly depended on one another.
You can check the current LUNC price on the Terra Classic price chart above.
However, in May 2022, the stablecoin lost its peg and, thus, crumbled. The UST stablecoin algorithm, which was intended to back up UST, created trillions of LUNA tokens and spiraled into hyperinflation. As a result, its collateral fell to its lowest level ever, and the Terra Classic price decreased to almost nothing.
In response, Do Kwon declared there was a revival strategy in place. Thus, on May 27, after forking Terra Classic, the Terra 2.0 network became operational.
Due to Terra's past, there may be some uncertainty over the names of the assets. Let's clear things out. At first, LUNA and UST tokens were stored on the original Terra blockchain. However, following the forking, it was renamed Terra Classic and its asset tickers were changed to LUNC (Luna Classic) and USTC (TerraClassicUSD). The new Terra 2.0 network, on the other hand, is now the host of LUNA.
Besides, due to the adoption of Terra Ecosystem Revival Plan 2, both variants of the token are legally permitted to exist.
The Previous Version of LUNC
The objective of LUNC (at the time LUNA) was to promote the widespread use of stablecoins, which were tied to the value of fiat currencies like the US dollar and South Korean won, while upholding the security of the blockchain and the resilience to censorship of cryptocurrencies. One of the most widely used stablecoins on the market over time turned out to be TerraUSD. In order to stabilize the TerraUSD token, the LUNC token was created to be used as collateral.
Due to its finite maximum supply of 1 billion, which was controlled by burning and minting in accordance with UST rules, LUNC had the potential of being a hyperinflationary asset. The stability of the TerraUSD market, which was the main factor contributing to the 2022 crisis, determined the LUNC price at that time. However, then, the crash happened, and you know the rest.
Don't forget to check the Terra Classic price chart above to see the current statistics.
Who Founded Terra Classic?
Daniel Shin and Do Kwon established Terra in January 2018, aiming to increase the use of blockchain technology and digital currency through a focus on cost stability and usability.
Subsequently, Kwon became the CEO of Terraform Labs, the organization behind Terra. Kwon previously was the founder and CEO of Anyfi, a company that offered decentralized wireless mesh networking solutions. Additionally, he has experience in software engineering from his time at Microsoft and Apple.
Shin, on the other hand, was also the co-founder and leader of Ticket Monster (TMON), a prominent South Korean e-commerce platform. Besides, he co-founded Fast Track Asia, an organization that helps entrepreneurs create successful businesses.