The curious case of Terra Luna 2.0 and Classic: a couple of crypto projects that are, if you like, reborn after the most spectacular crack in the history of cryptocurrencies. Very different projects, animated by different spirits, but which during the last week have also dominated the scene thanks to significant growth in terms of capitalization.
On the one hand, the old - and for many mysteriously still at large - Do Kwon , who with the 2.0 version of his project would like to return, albeit perhaps in a more sustainable way, to the glories of the past. On the other hand, a project taken over by a community and that wants to try to recover the good (it was a lot) that was inside Terra Luna .
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Fear and delirium on the Moon: a mini-guide to understand how to move
The news of the week is the return of Terra Luna , in particular in the Classic version that was born from the ashes of the spectacularly exploded project in the hands of Do Kwon and in the wallets of hundreds of thousands of people.
A return at least in terms of market prices , although as often happens it is studded with equally violent collapses, which however offers us the right side to discuss what is at stake, what could credibly be there and what are the things to be follow for the next few weeks and months.
The burn of 1.2%
Which will be applied to all on-chain transactions and which has already been indicated as supported by different exchanges , albeit in different ways. This is a move that will exert strong deflationary pressure on $ LUNC and could help its price, at least in the short term. However, a price that cannot sustain itself or continue to rise only thanks to this mechanism. Investors will have to find some utility in the project so that demand remains at least constant. It is not, at least in the opinion of this writer, the most important point of the future of $ LUNC .
FSO and Repeg possibilities
In other words, the return to parity of UST , the stablecoin historically linked to the project, a path which, however, even if outlined, is perhaps the most difficult for a whole series of factors. Firstly, it will take some value to cover who is still the holder of the currency, secondly it will be necessary to associate a utility to this instrument. Back in the day, which is actually just a few months ago, the bulk of the utility was shaken by Anchor , a protocol which then ended as we all remember. Now such a protocol would be unthinkable and therefore a utility will have to be found linked to the rebirth of such a project.
Does the world need a decentralized stablecoin? Could it be useful to insert other types of mechanisms to guarantee the peg or the anchorage to the US dollar ? He will judge history.
For now speculation, even if ...
We are in the field of pure speculation , although the feelings of those who dream of a rebirth of the protocol must be treated with enormous respect, which certainly had some good before the bankruptcy and regardless of the cheerful management of Anchor and its guaranteed interest rates.
For the moment, however, those who do not want to take risks, despite the races are interesting and appetizing, will only remain at the window, because the risks involved continue to be high, in a sector that is already quite risk on .
For the rest, that is for the medium and long term, everything will probably depend on the ability of the group that is trying to revive this rebirth to be the bearer of new projects or to be able to resurrect those of the past, such as UST.