You may recall the disaster surrounding Terra Classic (LUNC-USD) earlier this year, regarding its associated stablecoin TerraUSD (UST-USD). This debacle has undoubtedly scared some cryptocurrency investors away from Terra Classic. However, staking opportunities could bring some traders back into the fold while helping to repair the reputational damage.
Cryptocurrency and the blockchain have already faced persistent criticism from old-school traditionalists in the world of finance. The TerraUSD blow-up only added to the overall crypto pessimism, while also putting Terra Classic in a negative light.
Just maybe, though, Terra Classic can shake off the pessimism and provide wealth-building opportunities. The concept of staking could be the key that unlocks greater value for this crypto and for its audacious investors.
The Rise, Fall and Path to Recovery for Terra Classic
It’s hard to imagine this now, but LUNC actually rose from less than $1 in 2020 to over $100 in March of this year. At that time, it seemed like Terra Classic would just keep going up forever.
Then came May’s 60% price crash. Terra Classic’s stablecoin, TerraUSD, was supposed to be pegged to the U.S. dollar. As InvestorPlace contributor Brenden Rearick explained, “The algorithmic stablecoin is supposed to automatically fluctuate in supply as a way to keep prices at $1.”
However, at one point, TerraUSD’s value declined to 67 cents. Trading volumes of UST and LUNC increased, but it was mostly selling volume. By the end of May, LUNC traded at $0.0001.
More recently, however, the Terra Classic price approached $0.00015. It’s all about the baby steps as the downtrodden investors pick up the pieces and at least try to work their way back up to a fully penny.
Terra Classic Staking Could Get More Investors Interested
There’s an angle that might bring more investors into the fold and could generate strong interest in Terra Classic. It’s called staking, which “allows token holders to participate in proof-of-stake blockchain protocols,” according to BlockDaemon.
For practical purposes, staking allows qualified long-term cryptocurrency holders to generate some extra income. The idea of staking LUNC might sound complicated, but it’s actually a simple process.
Basically, just buy some Terra Classic from an exchange and put it in your secure crypto wallet. Then, head over to the official Terra website and follow the recommended steps. You may have to download the Terra Station software in order to complete these steps and start staking.
I certainly don’t want to guarantee that anyone will make money from staking LUNC. However, there is a Terra Classic staking rewards calculator that provides a ballpark estimate of how much can be earned over time from staking. I can’t vouch for its accuracy, but the earnings potential from staking does seem to be pretty impressive.
What You Can Do Now
Staking opportunities could help push the LUNC price back toward its prior highs. InvestorPlace contributor William White recently served up some ambitious price predictions, so feel free to check those out.
Just be aware that small-priced cryptocurrencies tend to be volatile. Therefore, it’s wise to maintain a moderately sized position in Terra Classic. Still, investors can hold some of it for the long term, in hopes of a resurrection of this once-hated crypto coin.
On the date of publication, David Moadel 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.