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LUNA Supply Nears 7 Trillion, Is $1 Still Possible?

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LUNA Supply Nears 7 Trillion, Is $1 Still Possible?

The circulating supply of LUNA has continuously gone up since the UST debacle began. This has mainly been from people redeeming their staked UST for the digital asset, which caused its supply to rise drastically in such a short amount of time. In turn, the price of LUNA had declined to reflect the enormous amount of tokens that were being dumped into the market. Now that the dust has finally begun to settle, the question remains where the price of the asset might end up.

$1 LUNA Still Possible?

Now, it may sound comical to debate whether the price of LUNA would be able to return back to $1 given that less than two weeks ago, the price was sitting above $100. However, this is the case as the digital asset is now about four zeros short of $1 and even that seems a generous value. What is on the minds of investors now is if the price of the digital asset would ever be able to recover in any meaningful way.

Related Reading | TerraLabs Sold Over 80,000 BTC To Rescue Its Stablecoin, Luna

To really assess if LUNA can recover to $1, the first thing to look at is the circulating supply of the digital asset. In less than two weeks, it has grown from a little over 300 million to almost 7 trillion tokens in circulation at the time of this writing. When the supply still remained above 300 million, the price was trending at $100, meaning that its market cap at that time was averaging around $33 billion depending on the price fluctuations.

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Presently, the total supply of the digital asset has now grown by more than 1,000,000% to be sitting at a little over 6.9 trillion tokens, according to CoinMarketCap. For LUNA to get to $1, it would mean that the market cap would have to touch $7 trillion, and that is if the current supply stays stable. This is presently impossible given that the whole crypto market cap at its highest was at $3 trillion.

LUNA trending low at $0.00018 | Source: LUNAUSD on TradingView.com

However, for LUNA to get to its previous market cap before the crash, the token would have to be trading at $0.005. Since a $33 billion market cap remains in the realm of possibility, it is safe to say that this is still within reach. 

Related Reading | LUNA Aftermath: Total Crypto Market More Oversold Than Black Thursday

One thing to take into account though is the investor sentiment. So many people have lost hundreds of millions of dollars to the token that faith in it has been depleted. Thus, with any significant rise in price, there are set-offs that rock the token price back down.

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This leads to the conclusion of this analysis which is that the price of LUNA could possibly climb back up to $0.005. But with current market conditions, this may not happen in the short-term and is entirely dependent on if the supply stops growing.

Featured image from TheNewsCrypto, chart from TradingView.com

Disclaimer: The following op-ed represents the views of the author, and may not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate of creative and financial freedom alike.

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… 

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Altcoins

Terra Classic spiked 17.63% in last 24-hour; reason might comfort you

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Terra Classic spiked 17.63% in last 24-hour; reason might comfort you

Terra Classic [LUNC] HODLers woke up to a pleasant surprise on the morning of 27 June when the infamous hacker activist group known as ‘Anonymous’ announced that they are looking into Do Kwon’s crimes.

Notably, the ‘Anonymous group earned its popularity for hacking and exposing corruption in governments and major corporations around the world. The hacker activist group now plans to investigate the Terra founder with regards to the LUNA and UST crash.

Interestingly, this announcement yielded a second pleasant surprise for LUNA and LUNC holders.

LUNC traded at $0.00008846 during press time after a 17.63% rally within the last 24 hours. Evidently, the LUNC has struggled to maintain significant upside ever since the Terra blockchain fork.

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Source: TradingView, LUNC/BUSD

However, this time around, Terra Classic’s robust upside was backed by heavy accumulation as the MFI soared from 23 to as high as 75.72. It did not experience significant friction until the price crossed above the 50% RSI level.

Can LUNC maintain bullish performance?

It is hard to tell if the latest uptick will turn out to be a passing fad or lead to better days for its holders. Although Anonymous promised to seek justice for LUNA holders hurt by Do Kwon’s actions, the activist group also warned that investors may not receive compensation for their losses. However, Terra 2.0 is operational and investors have hope for Terra Classic’s future.

Furthermore, LUNC’s latest upsurge had the second strongest bullish volume ever since its re-launch. It was also characterized by a strong uptick in its market cap. This reflects strong inflows in the last 24 hours.

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Source: Santiment

The reading of volume and market cap confirms that the announcement by the Anonymous group resulted in the positive price action of LUNC.

However, the supply held by whales metric did not register an uptick. This means most of the accumulation was fueled by retail traders. It also confirms that whales have been treading cautiously as far as LUNC is concerned.

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Source: Santiment

The low development activity for most of June provides more clarity as to why investors are yet to regain confidence in Terra and LUNA. This outcome may limit LUNA’s short-term upside. However, the retail market seems to be doing a fine job with the latest rally, and perhaps the right catalyst would support a bullish outlook.

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Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael’s writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

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Class Action Lawsuit

Do Kwon Interview Explains He’s ‘Devastated’ By LUNA Collapse, Says ‘There’s A Difference Between Failing And Fraud’

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Do Kwon Interview Explains He’s ‘Devastated’ By LUNA Collapse, Says ‘There’s A Difference Between Failing And Fraud’

During a recent interview with the Wall Street Journal (WSJ), Terraform Labs (TFL) founder Do Kwon said he was “devastated” by the LUNA and UST implosion that took place in mid-May. He told the WSJ that he was probably a billionaire when LUNA tapped an all-time high before the collapse, but lost a great portion of his net worth following the aftermath.

Do Kwon Speaks About the Terra LUNA Collapse

Do Kwon has recently discussed the LUNA and UST fallout during an interview with the WSJ contributors Alexander Osipovich and Jiyoung Sohn. The interview was published on June 22, and its the first interview Kwon has done since the Terra collapse. Kwon told the reporters that he lost most of his wealth after the crash but that doesn’t bother him that much. “This doesn’t bother me,” Kwon told the reporters. “I live a fairly frugal life,” the Terra co-founder said.

Kwon, however, said he was sorry about the losses investors took from the fallout. “I’ve been devastated by recent events and hope that all the families who’ve been impacted are taking care of themselves and those that they love,” Kwon stated in the interview. He also discussed his confidence that many called cocky, and noted that it was because he was a big believer in the Terra ecosystem. Kwon said:

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I made confident bets and made confident statements on behalf of UST because I believed in its resilience and its value proposition.” Adding he said, “I’ve since lost these bets, but my actions 100% match my words. There is a difference between failing and running a fraud.

Kwon Has ‘Great Confidence’ in the Terra’s ‘Ability to Build Back Even Stronger’

Furthermore, Kwon discussed the new Terra blockchain and LUNA 2.0 which is down 90% from the $18.87 per unit all-time high and now trades for $1.88. LUNA 2.0 has a market capitalization of around $238 million on June 23 and the token has lost 2.6% during the past 24 hours. Kwon believes the revival will be strong and thinks that LUNA 2.0 could someday surpass the LUNA classic (LUNC) chain.

“I have great confidence in our ability to build back even stronger than we once were,” Kwon told The WSJ reporters. Kwon’s WSJ interview follows the reports that said the U.S. Securities and Exchange Commission (SEC) was investigating Terraform Labs and the UST collapse. Moreover, a whistleblower called Fatman has accused Kwon of having massive amounts of LUNA in personal wallets.

Fatman has also accused Kwon of cashing out $2.7 billion in funds before the project collapsed but the Terra co-founder denies that he cashed out and he said the allegations were false. Kwon and Terraform Labs are also being sued in a class-action lawsuit that claims the co-founder and company misled investors. Additionally, official records indicate that Do Kwon dissolved Terraform Labs Korea before the LUNA and UST collapse. Three members of Terraform Labs’ in-house legal team left the company amid the controversy as well.

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Class Action Lawsuit, Class-Action, collapse, depegging, do kwon, interview, LUNA, Luna 2.0, LUNA Investors, LUNC, New Blockchain, SEC, Terra, terraform labs, TerraUSD, TFL, UST, UST depeg, UST Investors, whistleblower Fatman, WSJ Interview

What do you think about Do Kwon’s interview with the WSJ? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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$655 million loan

Three Arrows Capital Allegedly Owes Voyager Digital $655M — Crypto Firm Is ‘Unable To Assess’ If It Can Recover The Funds

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Three Arrows Capital Allegedly Owes Voyager Digital $655M — Crypto Firm Is ‘Unable To Assess’ If It Can Recover The Funds

According to reports, the TSX-listed Voyager Digital is another company that has been negatively affected by financial issues tied to the crypto hedge fund Three Arrows Capital (3AC). In a letter to investors, Voyager’s management explained that 3AC potentially defaulted on a $655 million loan and it hopes to obtain some of the funds by the end of this month.

The Three Arrows Contagion: 3AC Owes $655 Million to Voyager Digital — Management Has Set a Repayment Date

3AC’s financial hardships have seemingly started a contagion throughout the crypto industry and while a number of firms said they were safe, others explained they were suffering from the fallout. For instance, a company backed by 3AC called Finblox detailed on June 16 that it had to pause rewards (up to 90% APY) for all of its users, and the platform upped withdrawal limits as well. This week, the publicly listed crypto company Voyager Digital revealed it was dealing with issues tied to 3AC.

In a letter sent to Voyager’s investors on Wednesday, the company disclosed it was owed $655 million and 3AC was supposed to pay the funds back in bitcoin (BTC) and the stablecoin usd coin (USDC). Voyager is owed 15,250 BTC and 350 million USDC, according to the company. Management said it originally asked for $25 million worth of USDC to be paid by June 24, but now it wants the entire balance of USDC and BTC by June 27.

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TSX-Listed Stock VOYG-T Loses Half of Its Value in a Day — Voyager Is ‘Unable to Assess at This Point the Amount It Will Be Able to Recover’

The news seemingly did not sit so well with Voyager investors as the company’s shares dropped 53% in value during a 24-hour period. Presently, the TSX-listed stock VOYG-T is down 52% and trading for $0.76 per unit. On June 21, VOYG-T exchanged hands for $1.60 per share and in March 2021, VOYG-T saw an all-time high (ATH) at $32.68 per share. VOYG-T is currently more than 97% lower than the ATH and the stock has been sliding lower ever since crypto markets have dropped in value. The 3AC loan default announcement added another blow to the value of the company’s shares.

The letter that discusses the initial USDC payment request, and then the request for the entire balance, says that Voyager does not know if it will be repaid. “Neither of these amounts has been repaid, and failure by [Three Arrows] to repay either requested amount by these specified dates will constitute an event of default,” Voyager said. “[The company is] unable to assess at this point the amount it will be able to recover.” Bitcoin.com News recently reported on Three Arrows Capital and explained how the company’s founders have been silent about the situation.

3AC co-founder Kyle Davies did disclose to the Wall Street Journal (WSJ) that the Terra LUNA and UST fallout hurt the company and plans were being made to find an “equitable solution” for all of 3AC’s constituents. Furthermore, 3AC allegedly tried to pitch a GBTC arbitrage trade to a lot of big name investors a few days before the company’s rumored collapse. Besides Finblox, Voyager, and 3AC, Mike Novogratz’s Galaxy Digital has seen its shares plummet significantly since the Terra LUNA and UST fallout. Galaxy’s shares are down close to 90% from the share’s price highs in mid-November.

Novogratz was also silent for a bit following the Terra fiasco but then published a public apology about the matter but said Galaxy did not suffer much from the Terra collapse. This is because Novogratz said that Galaxy stuck to a core tenet of investing which includes only investing in what you are comfortable losing. Since the letter, Novogratz has been a bit more active on social media while many others who promoted or invested in Terra have remained silent or dissociated themselves from the blockchain project.

Tags in this story

$655 million loan, 3AC, 3AC loan default, Bitcoin (BTC), Crypto, Cryptocurrency, defaulters, Digital Assets, Finblox, loan default, loans, LUNA, Stock Market, Terra fiasco, Three Arrows Capital, TSX-listed, usd coin (USDC), UST fallout, voyager, VOYG-T, VOYG-T stock

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What do you think about the problems Voyager Digital faces with the crypto hedge fund 3AC? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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