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Luna Coin News: All You Need to Know About Luna Coin

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Terra Luna coin

The collapse of Terra’s UST stablecoin and governance token LUNA Coin, emerged as one of the biggest upsets in the crypto market last week.

Findings by Investors King showed that LUNA plunged to $0.00002 according to data from cryptocurrency data aggregator, CoinGecko.

At press time, Terra LUNA Coin was ranked 211 on Coinmarketcap, trading at $0.0002353 with a 23.84% drop in the last day and a 100% decline in seven days.

Terra is an open-source blockchain protocol that creates stablecoins designed to consistently track the price of a fiat currency.

TerraUSD (UST) and LUNA Coin are both native tokens of the Terra network, a blockchain-based project developed by Terra Labs.

Terra’s native token, LUNA, is used to stabilise the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.

The asset which was ranked among the 10 most valuable cryptocurrencies, has now collapsed by more than 99%, resulting in huge losses for investors.

The Luna crash was attributed to its link to terraUSD (UST), a stablecoin that was pegged at 1 US dollar. UST has recently dropped from its value of $1. Since both UST and LUNA are interlinked, the massive drop in UST value has resulted in LUNA’s overall drop.

The protocol behind the Luna cryptocurrency announced via Twitter on May 13 that it had temporarily halted its blockchain to stop transactions after the token’s price plummeted.

In a separate Tweet, the platform disclosed that the Terra blockchain had resumed block production. The company also stated that it will investigate and publish the findings of the crash.

‘’A post-mortem on everything that transpired the past week is in progress. It will be published asap. These are tremendously difficult times for everyone affected. The feelings are still raw. Please be safe. The strength of the #LUNAtics has been amazing. More to come,’’ the company tweeted.

Meanwhile, Changpeng Zhao, the CEO of crypto exchange Binance has advised against hard forking the Terra blockchain as a means to revive the Terra (LUNA) and TerraUSD (UST) ecosystems.

The crypto investor in a Tweet suggested that the Terra community should first burn the extra minted LUNA, and recover the UST peg to revive the token’s market value.

‘’I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response, or much response at all,’’ he said.

On his part, Ethereum co-founder Vitalik Buterin backed a tweet proposing that Terra prioritise smaller investors who lost funds due to the crash.

‘’Strongly support this. Coordinated sympathy and relief for the average UST smallholder who got told something dumb about “20% interest rates on the US dollar” by an influencer, personal responsibility, and SFYL for the wealthy,’ Buterin stated.

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Cryptocurrency

Bank of England Mulls Digital Currency

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Bank

The Bank of England (BoE) has stated that the United Kingdom might need to create a Central Bank Digital Currency (CBDC) by 2030 which will create a way for “digital pounds”.

According to a report by Daily Telegraph, the roadmap to a “digital pound” will be launched this week. 

Claiming a government source, the newspaper reported that His Majesty’s Treasury also has shown interest in the digital currency while the Deputy Governor of Bank of England, Jon Cunliffe is scheduled to give an update on the development on Tuesday. 

Investors King understands that this new development is coming just a few days after His Majesty Treasury posted an open position on LinkdIn for a head of Central Bank Digital Currency. The job description described the role as Important, Complex and Cross Cutting. 

The United Kingdom will be joining China, Brazil, Nigeria and other countries that have launched a digital currency if the Bank of England successfully launched a digital pound. 

Similarly, the European Central Bank has been discussing the prospect of a digital euro while a few other countries in Asia and South America are also keen on the option of a digital currency. The United States is also reported to be planning a digital dollar in the near future. 

What to know About Digital Pound 

A digital pound will be issued by the Bank of England. It will have the same value as the physical pound. For example, 20 pounds of a UK digital currency would always be worth the same as a £20 note.

The issuing of a digital pound will not stop the issuing or usage of physical notes as users will decide the way they choose to pay for goods and services.

A digital currency or digital pound is however different from a cryptocurrency which value can increase and decrease. Cryptocurrencies are privately issued digital assets, unlike a Central Bank Digital Currency that is issued by the central bank.

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LUNC Responds to Binance Update, Gained 18% in 24 Hours

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Terra Luna

Terra Classic (LUNC) gained 18% in 24 hours days after Binance removed the warning label on the Terra ecosystem.

This recent development from the largest cryptocurrency trading platform greatly provoked more investors to buy into the LUNC and USTC tokens. LUNC and USDT are products of Terra ecosystem.

It would be recalled that following the fall of the Terra ecosystem in May 2022, there was a massive decline in the prices of Terra Classic (LUNC) and the supposed algorithmic stablecoin – TerraClassicUSD (USTC). These assets thereafter became risky for both retail and institutional investors alike. 

To protect investors, the world’s largest cryptocurrency exchange, Binance attached a warning label on both tokens leading to more downward pressure. 

Investors King could recall that the creator of Terra Blockchain, Do Kwon also abandoned the project after being charged and arrested by governments from different countries. 

However, the Lunc coin increased by 18% on Thursday, riding on the Binance news and the new momentum in the entire cryptocurrency market.

A check at TradingView shows that Lunc crossed the $0.0002 mark before retracing to $0.00019 at the time of writing this report. 

Going forward, a number of fundamentals which could propel a new upswing for Lunc include a recent proposal to re-peg the price of USTC (sister stable coin to $1).

Similarly, Lunc burning is likely to begin speeding up again. 

As of writing, around 38.5 billion LUNC have been burned to date, out of a total circulating supply of 6.87 trillion while the Terra Luna Classic Community is gearing up efforts to enhance the utility of the network.

The Terra Luna Classic Community has passed a Proposal to upgrade the blockchain from v1.0.4 to v1.0.5 and introduce codes to make future upgrades possible. It will also bring back the Binance LUNC burn mechanism.

Without much ado, these developments point towards a rising LUNC price over the medium-to-long term. 

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Crypto Market Sustained Profitability; Enters Into Accumulation Phase

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Cryptocurrency - Investors King

The cryptocurrency market sustained its profitability which started in early January. The crypto market which has entered into accumulation ahead of its next phase enjoyed a great start this year, recording its best January since 2013. 

Leading the pack, the world’s largest digital currency by market value, Bitcoin which traded slightly above $24,000 on the first of February is now stable at around $23,500 at the time of writing this report. This represents more than 40% increase since the beginning of this year, data from CoinDesk shows. 

Riding on the momentum, a number of Altcoins including Matic, Ethereum, Binance Coin, Mana and Harmony have also recorded double-digit gains. 

Investors King understands that while most of the cryptocurrencies have retraced slightly downward and now trading sideways, it could be an accumulation phase ahead of the next market direction. 

As earlier reported, several factors including the cooling off of inflation in the United States are the primary drives for the new rally after the crypto market suffered one of its major corrections in 2022.

It could be recalled that after the bull run of 2021, the cryptocurrency market lost more than $2 trillion off its market capitalization. 

After peaking at $68,000, the flagship cryptocurrency, Bitcoin fell below $16,000 in November 2022 while most of the Altcoin shed more than 50% of their gains. 

Additionally, several events such as the collapse of one of the largest crypto exchanges, FTX and the Fall of the Terra Network added to the pain felt across the cryptocurrency market. 

However, the crypto community is feeling a new hope with the renewed rally and the stability in the market. 

In addition, a CNBC article also predicted that 2023 holds a huge prospect for the cryptocurrency and stock markets if the Fed and Central Banks slow down the pace of monetary tightening. 

“If the Fed slows down the pace of monetary tightening, or cuts the benchmark rate, it could serve as a boon to risk assets, including cryptocurrencies and stocks, and investor expectations that this slowdown will materialize could certainly prove bullish”. The article stated. 

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