Terra, with the old chain, being renamed Terra Classic (LUNC)

by | Jul 14, 2022 | Market, Market News, News | 0 comments

With the emergence of cryptocurrencies, the financial system saw the emergence of a new era, that focuses more on this digital currency. However, the crypto market is not immune to the obstacles that the financial market faces and have been subjected to various ups and downs as well. The past few months have not been so great for the crypto market as well. Bitcoin has been in a constant downward trend owing to various reasons and which has been a major concern for those involved or invested in it.

Take a look at the Crypto market

In the downward trend that the cryptocurrency sector has been facing, there have been elected few who have been the biggest sufferers out of the lot. One of these is the Luna which fell tragically in recent weeks. The Terraform Labs which are the source of the Terra blockchain or the Luna cryptocurrency have been trying to come up with ways to make it right and reverse the crash.

However, one of its suggested ways to carry on the work of reforming the cryptocurrency s to come up with a new system that is to be named Terra and to rename the chain that already exists Terra classic. The functions assigned to these new systems are that the Terra is to produce the Luna coins. The Luna that had already been existing till now shall also turn into or henceforth shall be known as luna classic.

Terra Classic

Take a peek into the new Luna introduced recently

With the major changes introduced by the Terraform, certain new changes shall be made to the existence of Luna coins as well. These coins are now supposed to appear on the scene in a transformed form, that is, in minted condition. These coins are also only supposed to be shared with those who suffered huge losses when the Luna market crashed tragically.

However, it is important to keep in mind that the new chain that is being put in place shall knot extend any support in any form to the Terra UST.

Learn about the causes of falls in luna

The fall in luna coins was caused by a simple phenomenon and that is because of the shift in the peg of the Terra UST. This coin was supposed to maintain its value all the time and was supposed to be at a value of 1$. It is also important to keep in mind that these coins do not have any support from the US dollars as other cryptocurrencies coins do. This stablecoin, that is the UST takes thee the support of the Luna which is otherwise referred to as its native currency to maintain its value at all times.

It was always the system that a single UST can at all times be exchanged for luna worth one dollar. This system was followed at all ones even when the worth of the UST dipped below its usual rate.

It was done so with the idea that if the value of the UST were to be dipped then it would cause a problem. Certain traders would buy these USTs and exchange them for luna quite easily and conveniently. However, this system shattered or broke down when a purchase of almost as much as 2 billion dollars worth of UST was purchased, and millions of them were sold.  There the value of the UST dipped and with the exchange of Luna taking place, it was not able to keep up with the pace at which these circumstances were progressing. Thus, all these changes led to the downfall of the Luna coins.

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