How can you overcome your shady past? Well, introduce a model while learning from previous mistakes. That’s what Terra’s Phoenix coin LUNA did amid an over 200% surge. But what did the move cost?
Starting from Scratch
LUNA, the digital coin behind the Terra blockchain, saw some unprecedented surges during this publication. The alternative token traded near $7.06 during this publication, gaining over 260% (Coinmarketcap data). Meanwhile, the project tries to fix broken glasses after the twin debacle of Terra’s LUNA and stablecoin UST.
LUNA’s Surge of the Week
The overall 24hr trading volume stood at $1.75 billion, and Binance dominated 32% of the figure. Also, Bitcoin gained 8.6% within the previous day. Meanwhile, the surge sent BTC’s market cap to levels beneath $1 billion, hiking from $321 million to $995 million, representing a 209% surge (data from CoinGecko).
Meanwhile, CryptoCompare assessed the token’s volume. Terra’s trading volume surged suddenly from $6 million to above $200 million within the past few hours. The Binance exchange accounts for nearly 60% of LUNA’s trading volume, while OKX and Gate.io represented 25% and 5.4%, respectively.
The high traction had the alt’s social metrics reiterating similar trends, according to LunarCrush’s tweet. Meanwhile, the May slump that saw LUNA crashing from $65 to below $1 destabilized the ecosystem’s stablecoin UST. Nevertheless, founder Do Kwon remained adamant that Terra would recover. He reiterated the plans by sharing spanner and hammer emojis on Twitter.
All Glitter But
Is it time to celebrate? Possibly not, as most investors/enthusiasts/analysts ask questions about the surge’s source. Some even trusted a pump and dump project to capitalize on the unprecedented upside. The renowned crypto researcher and analyst FatMan attacked the platform, urging market plater to adopt caution.
Another instance saw Terraform Labs sending 435,000 LUNE coins (received from LUNA2.0 airdrop) to the Binance exchange for selling. Do Know shut the alleged assumption within no time. Nevertheless, comments from enthusiasts reflect dissatisfaction with Terra. The crypto project may need more to regain investor confidence.
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