From its all-time low of $1.53 on August 29 this year, Terra LUNA has made a strong gain of overall nearly 352% in the last 24 hours. (REUTERS)

Terra Luna skyrockets over 200% in 24 hours. Should you invest?

At the time of writing, on CoinMarketCap, Luna is performing at $5.96 up 206.07%. Its weekly rise is around 216.37%. The market capitalization of the token is over $3.10 billion. Over the past 24 hours, the token has reached the daily high of $6.91.

Since its all-time low of $1.53 on August 29 of this year, Terra LUNA has made a significant gain of nearly 352% in the past 24 hours.

Overall, the token even outperformed major crypto leaders like Bitcoin and Ethereum which were up over 9% and nearly 5% respectively. There is widespread buying among cryptocurrencies which has pushed the global crypto market capitalization to $1.04 trillion.

Dileep Seinberg, Founder & CEO of MuffinPay, Bill Payment & Utility Crypto, said, “Luna Classic (LUC) nearly doubled in the past week. the rally.”

Terra has received approval for a 1.2% tax reduction for on-chain transactions of LUNC and USTC on the Terra Classic network. These proposals are being developed to increase the tax parameter from its current value of 0 to 0.012 (1.2%).

According to Terra governance, the 1.2% tax will be applicable on all currency denominations currently available on the chain, including LUNC and USTC.

Terra’s 1.2% tax reduction will take effect on September 20 at the height of the Terra Classic block of 9,475,200 after the proposal is submitted.

Currently on Friday, the Terra Classic Lunc, which entered the list of the top 30 cryptocurrencies yesterday, was trading at $0.0004657 down 13.4%.

Crypto exchanges Huobi and BTCEX are the latest to support Terra’s 1.2% fee reduction plan. Other exchanges like MEXC Global, Kucoin, and Gate.io have also announced their support. However, the world’s largest crypto exchange by trading volumes, Binance has decided not to apply for Classic’s tax cut plan.

On Thursday, Binance in its notification said, “Binance will review and change the minimum withdrawal amount, maximum withdrawal amount, and withdrawal fees for LUNC and USTC through the Terra Classic Network.”

For deposits, Binance informed that transactions will be taxed by the Terra Classic network before they reach Binance. The balance will be credited to your Binance account after the 1.2% tax deduction by the network.

Meanwhile, for withdrawals, Binance said users will receive the withdrawal amount minus the withdrawal fee charged by Binance and the 1.2% tax deduction by the network.

Amid the flash crash of Terra USD and old Luna, in May this year, Terraform Labs co-founder Do Kwon launched Terra 2.0, under which the original Terra chain was rebranded as Terra Classic. While a new chain called Luna was created with the existing name Terra and made available for trading.

A few months ago, the hype surrounding the Terra tokens was about the USTC and the crash of the old Luna which allegedly wiped out $40 billion in wealth. The fear emerged in mid-May when Terra’s USD cleared its $1 peg. This led to a deep freefall in both Terra sisters with old Luna tokens collapsing to zero. Investors, exchanges, and companies that believed heavily in Terra USD in the early months of 2022 have seen their wealth evaporate. The impact of Terras in mid-May resulted in an intense liquidity crisis and the industry is still trying to breathe. Since the launch of Terra 2.0, the tokens have been volatile, but have gained momentum since last week.

One wonders if the current surge in performance of Terra tokens is not the start of a promising bull run. Or a disguised bear perspective?

Where do Terra tokens go?

Rajagopal Menon, VP of WazirX, pointed out that Terra Luna Classic recently went from 10,000 points per coin to 12,500 points per coin. In May, the buzz was about why Terra Luna Classic was falling, if it would ever re-index, and if it would ever be able to stabilize the UST again. Then the debate slowly shifted to Terra Luna Classic vs. Terra Luna 2.0, which will be better.

Menon added, “Now the feeling in the community has always been ‘Let’s build Terra Luna Classic, let’s rebuild this community,’ We are the LUNAtics, we are strong.”

WazirX VP said, “On August 26, staking was re-enabled on the classic Terra Luna blockchain and Orion Money officially uploaded version 22 to re-enable staking and include the burn tax. Investors are buying in predicting the price to rise from around 8,000 points per coin to around 10,000 points per coin and then to 12,500 points per coin today.”

Looking ahead, Seinberg added, “At the current stage, Luna remains a volatile trade. The new burning pattern will not significantly change the fundamentals of the coin. Such trades should be avoided and only entered if they have an appropriate exit strategy both upside and downside.”

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