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What is Terra Luna (LUNA Coin)?
Terra emerged as a blockchain protocol back in 2018. Terraform Labs created it. The idea? A payment platform for algorithmic stablecoins. It tried something different - combining fiat stability with crypto benefits. Pretty ambitious stuff.
LUNA served as Terra's native token. Not just any token though. It was essential. The backbone. LUNA absorbed price volatility from those Terra stablecoins. No traditional backing here. Instead, a dual-token approach that seemed quite clever at the time. Burning. Minting. Complex mechanics.
Growth came fast. Really fast. Stablecoin demand shot up, and LUNA's value followed. It spread everywhere in the DeFi world. At its peak? Top ten crypto. Reached $119.51. Then... disaster.
Terra Luna History and Founders
It all started in January 2018. Do Kwon and Daniel Shin. Seoul, South Korea. They founded Terraform Labs with this big idea - make blockchain adoption faster by fixing the stability problem.
April 2019 saw the mainnet launch. Their algorithmic stablecoin protocol went live. Things moved quickly after that. Partnerships formed. The Chai connection proved especially important - a mobile payment app processing through Terra's network. Smart move.
Terra Luna Main Features
Terra Luna Crypto Use Cases
Terra Luna Collapse: What Happened to LUNA Coin?
May 2022. A month nobody in crypto will forget. Terra collapsed. Just like that. $45 billion gone in a week. It seems almost unreal looking back.
It started May 9th. TerraUSD (UST) slipped from its $1 peg. What came next? A death spiral. Both UST and LUNA crashed. LUNA fell from $119.51 to basically nothing. UST dropped to $0.044. The peg? Never recovered.
Terra Luna Classic (LUNC) Future
After everything fell apart, the community made a proposal. Create a new Terra chain. Let the original continue as Terra Classic. Kind of surprising they managed to organize anything after such trauma.
The original chain? Still going. Now called Terra Classic, with LUNA rebranded as Luna Classic (LUNC). They've added a burning mechanism for on-chain transactions. Trying to fix that massive inflation from the collapse.
Market predictions? Not entirely clear. Some say LUNC might reach around $0.000201 by September 2025. Analysts talk about a maximum price of $0.000304 in 2025. Long-term? Who knows.