In recent times, more specifically in the current year, the Terra classic faced one of its major downfalls. It suffered a huge amount of losses that were almost impossible to recover and it left the whole market in shock. The Terra classic fell as much as 99.99% from its top position. It fell to a level where it was almost impossible to revoke it or make it work. However, the team put in their thoughts and plans to help revive it and recover all the losses incurred.
The worst year that LUNA faced
The year 2022, can be said to be one of the worst years ever faced by Terra and its token LUNA. The fall occurred due to several reasons, however, the main reason was the failure of an anchor which was controlled by a well-funded trader, and the lack of adherence to its protocol.
Let’s take a look at the events that led to the downfall of LUNA
Initially, LUNA users were able to withdraw UST in exchange for LUNA or by keeping the LUNA in the anchor protocol for the UST. It is structured in such a way that it can maintain its balance throughout and 1 UST can easily be used for $1 of LUNA. When the Terra classic platform was attacked, the attacker targeted the UST and demolished the value of the peg which in turn led to the downfall of the LUNA’s value.
It could become a success for the traders as the prevailing system was so designed that whenever there is a fluctuation in the UST, LUNA was created to help restore the value of the peg. This was done by trading the UST for $1 of LUNA. The hacker extorted a higher pressure on the value of the UST in a downward fashion which was then used by him to rede LUNA tokens.
This, a higher supply of LUNa was created which further worsened the situation. This, the more than adequate supply of the token affected each other adversely and this led to the downfall of the whole system.
Is now the perfect time to buy the Terra classic?
The value of a cryptocurrency cannot be said with certainty. This particular segment of the financial sector is uncontrolled by my governmental authorities. It also does not follow any such rules or regulations that would safeguard its value or the interest of its investors and those who are associated with it. The value of the market goes up or down based on the presumption of the people. If people assume it to be on the back foot, the demand automatically falls. Like, wise if people show more interest in it, its value automatically rises.
There are even various systems put in place by the Terra classic platform that can help one analyze its situation in real-time This website or source does in no way makes suggestions on when to buy or sell. Its whole purpose is to provide those who are social with the crypto market, and more specifically with Terra classic, all the information they need.
What was the vision for Terra LUNA?
Before Terra fell from its peak, there have been various analyses that suggested the rise of cryptocurrency. Its prices were forecasted to show an upward movement and earn profits. However, there were even some who had suggested that it might not be so positive and that the Terra classic might fall after a few moments in the sun. They had even highlighted the aspects of it which displayed a certain vulnerability and had indirectly hinted at possible causes that could eventually lead to its downfall.