Terra Classic (LUNC-USD) is jumping 50% to $0.00014 in early trading. The rally, which began early in the week, is occurring after a “hacker activist” organization called Anonymous said it would launch a probe of the originator of Terra, Do Kwon, earlier this week. Meanwhile, websites provide varied Terra Classic price predictions.
The Background of Terra Classic
Terra Classic and its sibling stablecoin, TerraClassicUSD (USTC-USTC), were created by those carrying out a blockchain project known as Terra. Launched as a stablecoin, TerraClassicUSD was supposed to continuously be worth $1 per coin. Its relationship with Terra Classic was intended to help its price stay constant. However, due to a high number of withdrawals amid the collapse of cryptos in general, USTC’s value fell below $1 starting in May, while the value of Terra Classic dropped to “virtually zero.”
At the end of May, the original Terra split off into two branches. The first is the original, with a linked stablecoin, called Terra Classic. The new Terra trades simply under Terra (LUNA-USD) and is also referred to as Terra 2.0.
Do Kwon Has Become Controversial
In the wake of Terra’s inability to maintain its stablecoin peg, a high number of Terra investors have become upset with Do Kwon. Many Terra investors were displeased by Kwon’s decision to completely separate Terra Classic from Terra 2.0, which is supposed to help developers.
Anonymous, the group of hackers that’s investigating Do Kwon, “is well known for taking on Big Tech and the government,” InvestorPlace Financial News Writer Brenden Rearick reported Monday.
Terra Classic Price Predictions
- CryptoPredictions expects Terra Classic to finish August at $0.000574.
- For its part, CoinPedia says that, in the third quarter, the currency “might soar to its quarterly high of $0.000713” or sink to $0.0000573.
- According to DigitalCoinPrice, Terra Classic’s “average price” in 2023 will be $0.000199.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.