The price of Terra (USTC), a virtual asset (cryptocurrency) that collapsed last year due to the Terra Luna incident, rose more than 300% in one day and then plummeted, causing fluctuations in price. Investors are required to be cautious as the price fluctuation range is large.
However, Terra (USTC, Terra Classic USD) and its ‘sister coin’ Luna Classic (LUNC) are currently not available for trading on domestic exchanges. Currently, it is mainly traded on Binance, the world’s largest virtual asset exchange.
Based on CoinMarketCap on the 28th, the price of Terra Classic USD (USTC) was $0.042, up 220% from a week ago.
On the 27th, it rose more than 300% in one day. USTC, which had been trading at $0.01, rose to $0.019 on the 26th, and rose more than 300% to $0.072 on the 27th. It is currently down more than 40%.
After the ‘Terra Incident’ in May of last year, Terraform Labs CEO Kwon Do-hyung proposed a hard fork (an upgrade in which the blockchain splits into two) of the Terra blockchain. As the proposal was passed with community votes, a new blockchain, ‘Terra 2.0’, was born, and the existing blockchain remained as Terra Classic.
In addition, the existing Terra stablecoin UST became Terra Classic USD (USTC), and the existing Luna Coin became Luna Classic (LUNC). It is these two coins whose prices have risen significantly this time.
The price rise was influenced by the purchase of USTC by Terra Classic Labs, a Terra support community, to revive the Terra ecosystem.
According to what famous trader QT revealed through X (formerly Twitter), Terra Classic Labs purchased 25.6 million USTC at an average price of $0.021. It is worth about 500,000 dollars (about 647 million won). The analysis is that because of this, the price of USTC has risen noticeably.
Accordingly, the price of ‘sister coin’ Luna Classic (LUNC) also rose. Luna Classic (LUNC) also rose by about 60% in one day on the 27th, but has now plummeted by about 23%.
As the price rose, the market capitalization ranking also rose. Luna Classic (LUNC)’s market capitalization ranking is 77th in the world, which is still high.
Meanwhile, some analysts say that the prices of the two coins began to move after the news of the repatriation of Terraform Labs CEO Kwon Do-hyung.
On the 24th (local time), the Montenegrin court approved the repatriation of CEO Kwon Do-hyung overseas. Representative Kwon is a person who has been requesting extradition from both Korea and the United States since the time of his arrest.
Even in Korea, the argument that Representative Kwon should be sent to the United States is gaining strength. This is because you can receive a heavier sentence. However, if Terra and Luna are judged to be investment contract securities under the Capital Markets Act, there is an opinion that up to life imprisonment is possible under domestic law.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.