Terra Classic (LUNC), the original chain of the now collapsed Terra (LUNA) token, is recording increased buying pressure driving its value up.
Notably, the interest in the token appears to defy the ongoing sustained crypto market volatility, with LUNC surging as much as 80% in the last 24 hours, trading at $0.0002939 at the time of publication, according to data retrieved by Finbold from CoinMarketCap on September 1.
Furthermore, over the last week, the digital asset has risen by as much as 180%, climbing from $0.0001 on August 25. This substantial price rise has seen over $1.2 billion flow into LUNC’s market capitalization from $665 to $1.87 billion between August 25 and September 1, with LUNC valued as high as $2.23 billion at one point during the day.
LUNA continues to see new initiatives emerge
Even though LUNC has been labeled as a scam coin, the community has been very active and supportive of the cryptocurrency despite the fact that it was predicted that LUNC would disappear following the controversial crash. Several initiatives have emerged focussed on finding ways to reduce the available tokens and staking capabilities.
Recently, the creators of TerraClassic began work on a new network upgrade, which, if completed and authorized, would make it possible for investors to quickly purchase stakes in LUNC.
In the latest upgrade, version V22, a staking option has been added to the blockchain. The delayed project will get the much-needed impetus that it needs if the vote is successful and the proposal is approved.
It should also be mentioned that the largest crypto exchange, Binance, said a month ago that it would assist the network update by temporarily suspending deposits as well as withdrawals until the upgrade was finished.
After announcing the introduction of a new Governance Alert Bot on Monday (29 August), Terra saw a favorable price movement. The Terra community will be informed through the Governance Alert Bot of all activity related to Terra’s governance.
Notion of a short squeeze on LUNC
Additionally, the most recent increase in Terra’s value may also be ascribed to short squeeze activities carried out by the community in conjunction with an effort to regain the reputation that was lost. In the same breath, some analysts are of the opinion that LUNC might follow in the footsteps of meme currencies such as Dogecoin (DOGE) and Shiba Inu (SHIB).
It is also important to point out that LUNC’s effort to rally is connected to factors such as the token maintaining its listing on key crypto exchanges, despite the absence of substantial use cases.
In addition, LUNC’s bullish sentiments corresponded with a recent interview given by the creator of Terra, Do Kwon, who continues to deny any wrongdoings in the collapse. During the course of the conversation, he asserted that the Terra group housed a mole.
Regarding this matter, the authorities are still conducting an investigation against Kwon, and South Korean prosecutors have requested that the Ministry of Justice provide a “notice upon arrival” to the company’s founder.
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